U.S.-Iran draft truce framework raises prospects for reopening the Strait of Hormuz

Huo Xing Finance reported that The New York Times said on June 15 the United States and Iran have reached a preliminary framework aimed at ending hostilities and facilitating the reopening of the Strait of Hormuz. Shipping companies said a rapid return to large-scale transits is unlikely without explicit security guarantees. Carriers cited the lack of a defined security mechanism for passage through the strait as the main unknown, including whether Iran will commit to refraining from attacks on commercial vessels and whether stable, enforceable navigation rules will be put in place. Several firms said a full resumption could take weeks or even months. U.S.-based Safesea Group said some of its vessels remain damaged or stranded in the Gulf region and it needs \u0022clear assurances of nonattack\u0022 before restarting operations. Norway\u0027s Hoegh Autoliners said that even positive developments in the framework are not enough to restore shipping immediately. The Japan Shipowners\u0027 Association said it will wait for clearer security and navigation arrangements; it reported up to 38 related vessels still stranded in the Gulf. The International Maritime Organization called the framework an important step toward restoring maritime safety, while stressing the need to establish a security mechanism and to gradually evacuate about 11,000 stranded seafarers. Industry groups said a neutral coordination mechanism will also be needed to reduce risks such as collisions stemming from concentrated vessel traffic. Vessel-tracking firm Kpler estimates roughly 500 large commercial vessels remain stranded in the Persian Gulf region. Analysts said a return to normal operations in the Strait of Hormuz will hinge on follow-through on security measures and progress in rebuilding trust among the parties.