US-Iran ceasefire has little impact on shipping in the Strait of Hormuz

US-Iran Tensions Persist Despite Ceasefire Agreement

A two-week ceasefire agreement between the US and Iran has failed to alleviate tensions in the region, with shipping activity remaining limited in the Strait of Hormuz. According to ship tracking data, only a handful of vessels have transited the critical waterway since the announcement of the ceasefire on Tuesday.

As of Thursday, five vessels crossed the strait, down from 11 the previous day and seven the day before that. The majority of vessels remain stranded in the Gulf due to the blockage of the strait, with over 600 ships, including 325 tankers, still stuck, according to Lloyd’s List Intelligence.

The US President has accused Iran of failing to live up to its part of the ceasefire agreement, which includes allowing “safe passage” through the waterway for two weeks. Iranian Foreign Minister Abbas Araghchi has countered that the US is not honoring its commitments, warning that it must choose between a ceasefire or continued war via its ally.

The situation has led to increased oil prices, with Brent crude standing at $96.39 as of Friday morning. Market analysts have expressed caution, stating that safe transit capacity is expected to remain constrained, even if the ceasefire holds.

The waterway, which typically handles about 120-140 transits per day, has seen a significant decrease in activity since the US and Israel launched their attacks on Iran on February 28. The situation remains fluid, with both sides accusing each other of not honoring the agreement.

Source: Al Jazeera