FT: Conflicting US, Iran guidance leaves Hormuz shipping in limbo

Shipowners navigating the Strait of Hormuz are grappling with conflicting guidance from Iran, the United States and insurers over the safest route through the strategically vital waterway, industry executives and brokers said.

The uncertainty comes despite a recent easing of tensions between Washington and Tehran that has encouraged a gradual recovery in shipping traffic through the strait, a key artery for global energy supplies, the Financial Times reports.

Iran has instructed vessels to seek prior permission from Tehran and use a route closer to its coastline when transiting the strait, warning that ships that fail to comply could face penalties or be ordered to turn back.

At the same time, the United States and some western insurers have advised vessels to use a route on the Omani side of the waterway that is covered by U.S. military protection, according to shipping industry sources.

The competing instructions have left shipowners weighing operational, legal and security risks.

"Shipowners and operators find themselves caught in a difficult position. If they follow the guidance of underwriters and US authorities by navigating closer to Oman, they risk interference, detention or potential hostile action from Iranian authorities," said Dr SV Anchan, chair of U.S. shipping company Safesea Shipping.

"On the other hand, if they comply with Iranian instructions and navigate closer to the Iranian coast, they may expose themselves to potential sanctions-related concerns, including possible implications under [US] regulations, as well as being viewed as operating contrary to certain underwriter advisories."

One cargo insurance broker said: "The Iranians are insisting on ships using the Iran route and paying tolls."

"The US is telling ships to go the Omani route and escorting them with close air support. It’s not very joined up and it’s all going to end in tears."

A tanker industry executive said: "There does appear to be a push by the western shipping interests to use the Omani route," although "lots are also exploring the Iranian route as an option".

Traffic through the Strait of Hormuz increased over the weekend after the United States and Iran signed a memorandum of understanding that cleared the way for further negotiations on a broader peace agreement expected later this week.

According to the UK Maritime Trade Operations (UKMTO), more than 30 ships transited the strait during the 24 hours to midday on June 22, the highest level since hostilities erupted on Feb. 28.

Maritime authorities last week lowered the risk level for operating in the strait from "severe" to "moderate" following the signing of the memorandum.

UKMTO said "on-water behaviour" by Iran's Islamic Revolutionary Guard Corps had become "less volatile" after the agreement, while "US naval presence continues to provide stabilising oversight".

The United States established what President Donald Trump described on June 21 as the "Guardian Angel" route in early June to encourage commercial traffic through the waterway under U.S. military protection.

However, uncertainty deepened after Iran issued a document on June 19 requiring vessels seeking passage through the strait to obtain permission from the Persian Gulf Strait Authority, a body established by Tehran in May that has since been sanctioned by Washington.

"There appears to be some uncertainty between the recommended transit routes and the guidance being received from different parties," said Costas Delaportas, chief executive of bulk cargo operator DryDel Shipping.

"Owners, operators and insurers are all trying to balance safety, compliance and operational requirements, which is creating hesitation for some vessels."

Two insurance brokers said their firms were not directing clients to use a specific route. One broker said: "It’s really up to [shipowners] as they are at the sharp end operationally."

By Aghakazim Guliyev