Shipowners delay Hormuz transit until US-Iran deal proves material
According to an interview published on Tuesday in the Financial Times, Jotaro Tamura, the CEO of Japan's Mitsui O.S.K. Lines, indicated that shipowners will refrain from navigating the Strait of Hormuz for several weeks until there is assurance that the US-Iran agreement is substantial. The conflict in Iran, which escalated on February 28 due to US-Israeli airstrikes, has significantly disrupted shipping in this crucial route, responsible for transporting about 20% of the global oil and liquefied natural gas supply, as well as materials like aluminium and urea. With a fleet exceeding 900 vessels, Mitsui O.S.K. is one of Japan's top three shipping companies. Tamura emphasized that a mere agreement is insufficient; it must be meaningful and reflected in the realities of the Strait for shipping lines to feel secure. He projected that it could take weeks, or even a month, based on recent experiences.
Key facts
- Shipowners will not resume transit through the Strait of Hormuz for weeks.
- Mitsui O.S.K. Lines CEO Jotaro Tamura gave the statement to the Financial Times.
- The Iran war began on February 28 with US-Israeli strikes.
- The Strait of Hormuz handles around a fifth of the world's oil and LNG supply.
- Mitsui O.S.K. has a fleet of more than 900 vessels.
- Tamura said a simple agreement is not enough; it must be 'material' and translated into real situations.
- Tamura estimated it may take at least a couple of weeks or a month to restart transit.
- US President Donald Trump announced a deal to end the war in Iran.
Entities
Institutions
- Mitsui O.S.K. Lines
- Financial Times
Locations
- Japan
- Strait of Hormuz
- Iran