Iran has launched “Hormuz Safe,” a digital insurance platform for vessels in the Strait of Hormuz, allowing cryptocurrency payments amid global banking restrictions. War-risk insurance costs have surged, with premiums rising dramatically. Traditional payments face sanctions, making crypto a viable option, while the U.S. proposes a reinsurance facility for shipping risks.
The Greek-operated tanker Karolos departed for India after navigating the Strait of Hormuz, amid disruptions from the U.S.-Israeli conflict with Iran. With a capacity of 1 million barrels, it loaded at Basra and is headed to Sikka. The ongoing turmoil has led to a significant decline in maritime traffic.
A Panama-flagged crude oil tanker managed by Japan’s Eneos has successfully navigated the Strait of Hormuz, marking a significant achievement amid heightened tensions. Prime Minister Sanae Takaichi coordinated with Iranian President Masoud Pezeshkian to facilitate the transit, which carries 1.2 million barrels of Kuwaiti crude and 700,000 barrels of Emirati oil.
On May 9, a wooden dhow capsized near the Strait of Hormuz after a fire broke out, leading to one Indian crew member’s death and four others sustaining injuries. Authorities are investigating the cause, while the injured are receiving treatment in Dubai. Indian officials are coordinating assistance for the crew.
President Trump has altered his Iran strategy, prioritizing the reopening of the Strait of Hormuz while deferring negotiations on Tehran’s nuclear ambitions. This shift has heightened tensions, as U.S. warships now escort merchant vessels, prompting Iranian retaliation against UAE oil facilities and raising concerns about regional stability amidst ongoing military clashes.
Approximately 1,500 ships and 20,000 crew members are stranded in the Gulf due to Iran’s blockade of the Strait of Hormuz, impacting global shipping. Arsenio Dominguez, Secretary-General of the IMO, emphasized the urgency of the situation, highlighting the blockade’s severe implications for international trade and energy security.
Randhir Jaiswal, spokesperson for the Ministry of External Affairs, reported that 11 Indian ships have successfully exited the Strait of Hormuz, while 13 remain in the Persian Gulf. He addressed concerns about Iranian vessels using alternative routes and emphasized ongoing diplomatic efforts to ensure the safe passage of remaining ships.
The Ports and Maritime Organization of Iran has announced that its ports are ready to provide maritime, technical, medical, and logistical support to vessels in the Strait of Hormuz. Services include food, fuel, healthcare, and repair equipment, emphasizing safety and welfare for seafarers navigating this critical waterway.
In April, coal shipments to Japan, South Korea, and the EU rose by 27% year-on-year, fueled by tight gas supplies and LNG disruptions. Despite typical seasonal declines, a 1% month-on-month increase occurred. BIMCO warns ongoing Strait of Hormuz disruptions may further boost coal demand as utilities shift from gas to coal.
France has deployed its carrier strike group to the Red Sea to secure the Strait of Hormuz amid escalating U.S.-Iran tensions. This strategic move aims to address a blockade threatening global trade. France, in collaboration with Britain, is proposing a plan for safe passage, contingent on Iran’s engagement in nuclear negotiations.
On Tuesday, President Trump announced a temporary pause of the “Project Freedom” maritime operation in the Strait of Hormuz, amidst negotiations with Iran. While the blockade remains, the decision reflects requests from Pakistan and others, aimed at reassessing the feasibility of a comprehensive agreement amid ongoing regional tensions and security incidents.
The U.N. Security Council will discuss a U.S.- and Bahrain-backed draft resolution to impose sanctions on Iran if it continues threatening commercial shipping in the Strait of Hormuz. This initiative seeks to enhance regional security without explicitly authorizing military action, while demanding Iran’s compliance with ceasefire efforts and humanitarian corridors.
The ongoing conflict in Iran has created uncertainty for global shipping, particularly through the Strait of Hormuz, where 4% of dry bulk cargoes transit. With 210 ships currently trapped, two scenarios emerge: indefinite closure could weaken supply-demand balance by 2027, while a quick reopening might sustain robust market conditions through 2026.
An LNG tanker managed by UAE’s ADNOC has reportedly crossed the Strait of Hormuz and is now near India, marking the first loaded LNG vessel to navigate the strait since the Iran war began. Analysts note that vessels have been using evasive maneuvers amid heightened tensions in the region.
The Panama-flagged tanker Idemitsu Maru, carrying 2 million barrels of Saudi oil, has crossed the Strait of Hormuz, marking a significant milestone as the first Japan-linked crude tanker to do so since the Iran conflict began. This crossing highlights Japan’s ongoing diplomatic efforts to secure energy supplies amid regional tensions.
