The Strait of Hormuz, a crucial waterway located in the Persian Gulf, has become a major challenge for the global economy due to the ongoing conflict between the United States and Iran. The strait, through which approximately 20% of the world’s oil and natural gas is transported, has not been fully secured despite the recent tensions. Reports suggest that the heightened tensions between the US and Iran have severely impacted maritime trade in the strait, resulting in nearly 2,000 ships being stranded in the Gulf.
Experts warn that even if the route is re-opened, the risks may not be completely eliminated. According to US officials, it may take at least six months to clear the sea mines laid by Iran, while some analysts believe that completely eliminating the threat may be impossible. A confidential briefing was held at the Pentagon, where senior officials discussed the situation in the Strait of Hormuz. Meanwhile, insurance companies have suspended or increased premiums for war-related risks, citing the high uncertainty in the situation.
Insurance costs for ships passing through the strait have skyrocketed, from 0.25% of the ship’s value to 1-5% or even higher. Experts stress that for the strait to be considered safe again, a permanent ceasefire, clear security guarantees, effective mine clearance, and unimpeded control over maritime routes are essential. A temporary ceasefire may not be sufficient, and uninterrupted maritime traffic for an extended period is necessary to restore trust among insurance companies.
The International Energy Agency has termed this situation the most significant obstacle to oil supply in the world, surpassing the 1970s oil crisis. In other news, the UAE has detained 13 individuals suspected of being involved in an international narcotics smuggling network. The company’s revenue increased by 16% last year, reaching $11 billion, while its profit surged by 6.5%, making it the company’s highest profit in history.
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