Iran Begins Restoring Hormuz Traffic
Iran will seek safe passage for commercial vessels through the Strait of Hormuz following the signing of a US-Iran memorandum of understanding. According to a copy of the MoU published by Iranian President Masoud Pezeshkian on Thursday (June 17), vessels can pass from the Persian Gulf to the Sea of Oman and vice versa free of charge, but only for 60 days.
Commercial vessel traffic is said to resume immediately, with the target of resuming operations within 30 days. However, this process is contingent on the removal of technical and military obstacles, including the clearing of mines by Iran. This means that the opening of Hormuz does not necessarily mean full normalization from day one.
Iran will also hold talks with Oman to determine the future governance and maritime services of the Strait of Hormuz. These discussions will involve other Persian Gulf littoral states, so the long-term arrangements for the passage remain to be negotiated.
For energy markets, this detail is significant because it suggests the opening of Hormuz is gradual and temporary. The fee waiver is only valid for 60 days, while long-term regulations will be determined based on international law and the sovereign rights of coastal states. The market's next focus will be on the speed of mine clearance, the smooth flow of ship traffic, and decisions regarding navigation fees after the initial period ends. (arl)
Source: Newsmaker.id
