Strait of Hormuz to reopen for commercial shipping in coming months

US Navy and Insurance Companies Estimate Timeframe for Safe Passage Through Strait of Hormuz

The US-Israel conflict on Iran has led to a significant disruption in global oil and gas shipments through the Strait of Hormuz, a narrow waterway connecting the Gulf to the open seas. The strait, which accounts for 20% of world trade, has been closed since February 28, when strikes on Tehran killed Supreme Leader Ayatollah Ali Khamenei.

As of now, approximately 2,000 ships remain stranded in the Gulf, waiting to be allowed through. Even if the strait is reopened, there are concerns about the safety of shipping through it. The US has stated that it will take six months to clear mines believed to have been laid by Iran. This was one of the main reasons why maritime insurers cancelled “war risk” insurance for tankers traveling through the strait in March.

Shipping insurers estimate that premiums could increase by up to 5% due to the high level of risk associated with shipping through the Strait of Hormuz. The Iranian military has published a map showing parts of the strait that it claims have been mined, and an alternative route for approved ships was introduced earlier this month.

The US Navy has begun operations to clear mines in the strait, with two guided-missile destroyers conducting the operation on April 11. Underwater drones were later reported to be joining the effort. Pentagon officials estimate that it could take six months to fully clear the Strait of Hormuz of mines deployed by the Iranian military.

The International Energy Agency has described the disruption as “the largest oil supply disruption in the history” of the global market, surpassing the 1970s oil shocks. The US military has ordered its mine sweepers to continue clearing the strait at a tripled-up level.

Source: Al Jazeera