The strategic significance of the hormoz straits returns to the forefront, as the escalation of tension between Iran-Israel raises serious concerns about the safety of its routes commercial and her shipping.
The passage from this passage, which is one of the most critical gates in the world for shipping and trade due to oil and goods, is already accompanied by high costs on ships due to additional war risk premiums.
According to a sequel sources, these premiums range between 0.05% to 0.07% of the ship’s value for seven days in the area, costs that significantly charges the charterers.
As the Financial Times reveals, insurance prices for ships traveling to this strategic maritime passage have increased by more than 60% since the start of the crisis.
Simply put, for a VLCC ship worth $ 100 million, the cost of insurance is increased from $ 125,000 to $ 200,000.
The increasing risk in the area has also more than doubled the price for the charter of large oil tankers through the strait of the Ormuz, according to data from the Clarksons Research data company and analysis, reported by the Financial Times.
The daily price for the charter of a very large crude oil ship, which can carry 2 million barrels of oil, from the Gulf to China, increased from $ 19,998 two days before Israel’s attack on Iran last week to $ 47,609.
The sharp increase in costs far exceeds 12% of the broader Baltic Dirty Tanker index over the same period. The index monitors the prices of crude oil tankers around the world.
According to the International Counseling Company Drewry, if the strait becomes inaccessible, alternative routes via Ports of Oman (Duqm, Sohar) or Khorfakkan in the United Arab Emirates.
However, these options require combined transport with road and rail means, significantly increasing the time and cost of cargo movement.
Another solution is to pass through the Akaba Gulf and the use of land routes. However, limitations on infrastructure and regional instability make it difficult to implement.
As Drewry points out, these alternative routes are technically feasible, but have serious business and financial challenges.
Increasing operating costs, delays in deliveries and the need for complex coordination of the supply chain threaten the efficiency of shipping companies.
It is necessary to maintain the flow through a hormoz
Drewry points out that maintaining access to the straits of the hormoz is critical, not only for energy markets, but also for distributing critical goods in the Middle East – such as cereals, chemicals, machinery and furniture – as many vaginal countries depend on imports. The continuation of the operation of the trade routes through the hormone remains a matter of high importance for the stability of the global supply chains.
Column of oil tankers raises questions
Last Monday’s incident is raised further when there was a conflict of two oil tankers near the straits of the Ormuz. Although the causes have not yet been clarified, according to insurance circles, one ship had emitted informal signals, probably the result of electronic warfare or interference. The growing geopolitical tension in the region and the likelihood of further escalation between Tehran and Tel Aviv turn the hormoz straits into a volatility zone, with critical impact on world shipping and oil prices.
Confrontation to IMO with a focus on the strait of the hormoz and the red
At the same time, in a new phase of geopolitical confrontation, Iran and Israel entered, with the safety of navigation this time.
During a meeting of the International Maritime Organization (IMO) in London, the two countries exchanged fierce categories, escalating their rhetoric in an environment of increasing instability in the Middle East.
The Iranian delegation accused Israel of “illegal attacks” on nuclear and energy installations, such as those in Natanz and Asalieu, along the shores of the Persian Gulf.
According to Tehran, such actions place worldwide sea security and energy supply chain.
Warning that “escalation at sea is inevitable” if there is no international intervention, Iran has also reinstated the threats of excluding the Ormuz’s Strait – one of the most important strategic passages in the world for oil trafficking.
Former Finance Minister Ehsan Khandouzi said characteristically that “the crossing of tankers should only be allowed with Iranian license”.
At the same time, shipping services are advising commercial ships to avoid Iranian waters in the area, increasing confusion and concern about the impact on key marine corridors.
Israel’s response was sharp, accusing Iran of directly threatening international navigation through the support of Yemen’s Houthi rebels, reminding the attacks on merchant ships in the Red Sea and the Suez Canal.
“Iran has turned the Red Sea into a war zone,” the Israeli delegation told IMO, accusing Tehran of attempting hostage to international navigation.
The International Maritime Organization, for its part, said that the complaints of both sides were taken into account and reiterated its commitment to the neutrality and safety of the sea roads.
Source: RES-EIA