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Market Chatter: Transit Through Hormuz Strait Remains Dangerous, IMO Warns

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The International Maritime Organization has warned the shipping industry that a transit through the crucial Strait of Hormuz remains unsafe for commercial transport and companies should avoid the route for now, Bloomberg reported Wednesday, citing IMO secretary general Arsenio Dominguez.

Talking to Bloomberg Radio, Dominguez urged companies to avoid taking risks by transiting through the crucial waterway amid the ongoing volatility, while emphasizing on the need to uphold international law.

Dominguez's comments provide the most significant warning for shippers on navigational safety after the interim peace agreement between Iran and US fell apart. It is also an indication that the vital waterway remains a long way away from normalcy, the report said.

While oil had begun to flow from the Hormuz Strait after the interim deal, the resumption of hostilities had resulted in a collapse in observable transits.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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