Strait of Hormuz Expected to Reopen After US-Iran Ceasefire

Kathmandu. With a ceasefire agreement between America and Iran, hopes have increased that the Strait of Hormuz, one of the world's major oil and gas shipping routes, will reopen.

Even if the waterway reopens now, it is said that it will take some time (weeks) for ship movements to return to normal. Japan's large shipping company Mitsui O.S.K. Lines Chief Executive Officer (CEO) Jotaro Tamura said this in an interview with the Financial Times.

According to him, shipping companies will be ready to use the risky sea route only if the new agreement between America and Iran is not just a paper agreement but is actually implemented.

'Shipping companies will not return until the situation in the Strait of Hormuz is truly safe,' Tamura said. According to him, due to the unstable situation seen in recent months, shipping companies are still cautious and it is estimated that it will take at least a few weeks, possibly a month.

About 20 percent of the world's consumed oil and liquefied natural gas (LNG) is transported through the Strait of Hormuz. Items like aluminum and urea are also transported in large quantities through this route. However, ship movements in this route were severely affected after the Iran-America war that started on February 28.

Even though a new agreement has been advanced with the aim of ending the war between America and Iran, shipping companies are not fully convinced.

According to Tamura, only a political agreement is not enough, its clear security impact must be seen on the ground. Meanwhile, US President Donald Trump has claimed on social media that ships carrying oil have started operating again from the Hormuz region. He has described the route as completely safe and organized.