Iranian media: Strait of Hormuz remains operational.breaking

Iranian media: Strait of Hormuz remains operational.breaking

June 14, 2025 - Iranian media reports indicate that the Strait of Hormuz remains operational despite heightened tensions following Israel's recent attacks on Iran. The strategic waterway, which connects the Persian Gulf and the Arabian Sea, continues to handle approximately 20 million barrels of oil and oil products per day, accounting for nearly one-fifth of global oil shipments [1].

The situation remains tense, with maritime safety experts cautioning that ship owners are exercising extra caution and some are opting to avoid the Red Sea and the Persian Gulf [1]. The UK Maritime Organisation (UKMTO) has warned of the potential for rapid escalation in tensions with Iran, although it noted that there is no direct evidence of commercial shipping being targeted [2].

The Strait of Hormuz is a critical transit point for global oil and gas shipments, and its effective closure during the Iran-Iraq "Tanker War" in 1984 led to a surge in crude oil prices [1]. However, Iran's continued refusal to release the MSC Aries, seized by the Iranian military in April 2024 and owned by the Israel-linked non-operating shipowner Zodiac Maritime, has raised concerns about the prospects for container vessels [2].

Maritime analysts predict that a full closure of the Strait of Hormuz would have a significant impact on container supply chains, effectively cutting off transhipment hubs in Dubai and Abu Dhabi and severing export and import routes for Gulf gateway ports [2]. Vespucci Maritime CEO Lars Jensen noted that while a full closure is unlikely, a credible threat is sufficient to push more risk-averse commercial companies to avoid an area [2].

Insurance on ships, cargo, and crew is likely to be hiked by underwriters, according to Xeneta chief analyst Peter Sand. The inevitable disruption and port congestion, as well as the potential for higher oil prices, would cause a spike in ocean freight container shipping rates [1].

References:
[1] https://www.nbcphiladelphia.com/news/business/money-report/how-global-freight-ships-are-preparing-for-israel-iran-tensions-strait-of-hormuz-risks/4209432/
[2] https://gcaptain.com/container-shipping-faces-new-threats-after-israeli-strikes-on-iran/