Shipping Activity Rises After Iran, Israel Ceasefire
(MENAFN) Following the recent ceasefire agreement between Iran and Israel, oil transportation expenses have seen a notable decline, while maritime activity has surged through the Strait of Hormuz.
This development has calmed fears of possible interruptions in one of the world's most vital maritime corridors for energy exports.
The 12-day confrontation between the two nations had heightened apprehension that Iran might shut down the strait, which is a critical passage for global shipments of oil and liquefied natural gas (LNG).
Such a move had caused a spike in prices and an increase in shipping expenses during the hostilities.
Although there was no significant drop in vessel movement during the confrontation, anxieties subsided once the ceasefire was announced on June 24.
Since then, conditions have begun to stabilize in the region.
According to UK Maritime Trade Operations (UKMTO), the security risk in the area remains “significant” based on its most recent analysis of the Middle East.
However, the organization confirmed that ship movement through the strait has returned to routine levels and there is “currently no threat to navigation.”
UKMTO also emphasized that a firm ceasefire could contribute to easing naval tension throughout the Persian Gulf, which has seen repeated episodes of unrest in recent years.
Recent statistics from UKMTO indicate that 885 vessels traversed the Strait of Hormuz between June 23 and June 29, marking a 4 percent rise compared to the week before, when hostilities were still ongoing.
In contrast, more than 900 merchant vessels navigated the strait in the week leading up to Israel’s military actions against Iran, based on the same set of data.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
