The U.S.-Iran deal has raised hopes that the oil supply disruption in the Middle East could be nearing its end, but the biggest international tanker operators aren’t rushing to return to the Strait of Hormuz.
Oil tanker owners and operators are cautiously optimistic, but they will wait until they see a “material” agreement and safety guarantees before returning to the world’s critical oil and gas chokepoint, Jotaro Tamura, chief executive officer at Mitsui OSK Lines, the world’s largest tanker operator, told the Financial Times.
Since the U.S.-Iran agreement was announced this weekend, shipping companies have made it clear that they will wait until the deal is formalized on Friday before attempting to cross the Strait of Hormuz. Even for shipowners who are willing to make the crossing, organizing insurance and other practical issues could further delay the recovery.
“Given the experiences in the last couple of months, I think it’s reasonable to assume that it may take at least a couple of weeks or if not a month,” Mitsui OSK Lines’ Tamura told FT in an interview published on Tuesday.
“What will have to come in place is not just a simple agreement between the relevant countries, but it has to be material and translated into the real situations in the Strait of Hormuz, so that shipping lines can make themselves comfortable to go through,” the executive added.
Tamura spoke to FT before the deal was announced, but Mitsui OSK Lines on Monday said the company’s view of weeks until traffic resumes remains.
President Trump on Monday posted that “Ships are starting to move, many loaded up with Oil, out of the Strait of Hormuz. They are going along the Southern “Highway,” which is totally safe, secure, and pristine.”
The U.S.-Iran deal and the potentially imminent reopening of the Strait of Hormuz do not mean that oil and gas trade will quickly return to its previous levels, tanker owners and energy analysts say.
By Tsvetana Paraskova for Oilprice.com
