Hormuz naval escorts will not ensure vessel transits through Hormuz: IMO head

Naval escorts for oil tankers and other merchant vessels through the Strait of Hormuz have limited power to restore the free flow of shipping through the critical chokepoint, as they cannot eliminate risk, the head of the International Maritime Organization said March 19.

The US will provide insurance and guarantees for energy ships traveling through the Persian Gulf and begin escorting oil tankers through the Strait of Hormuz, US President Donald Trump said on March 3.

"Naval escorts on commercial ships is not 100% safe for ships, and it's not a long-term sustainable solution, because ships can still be targeted. There's still a risk there," IMO Secretary-General Arsenio Dominguez told journalists at a press conference to conclude an Extraordinary Session of the IMO Council, March 18-19.

A number of countries wish to restore transits through the Strait of Hormuz, through which 20% of the world's oil flowed until open conflict flared between Israel and the US on one side and Iran on the other on Feb. 28.

"We express our readiness to contribute to appropriate efforts to ensure safe passage through the Strait," the leaders of the United Kingdom, France, Germany, Italy, the Netherlands and Japan said in a statement March 19.

The conflict has caused widespread disruption and volatility in prices. Crude futures surged to fresh four-year highs on March 19 and the Brent-Dubai spread widened further as Iran launched a volley of missiles and drones at Gulf energy infrastructure, marking a significant new escalation in the Middle East war.

The Platts Dubai crude benchmark was assessed at a record high of $166.80/b on March 19, up 7% day over day. It was around $70/b pre-war. Platts, part of S&P Global Energy, assessed Dated Brent at $112.53/b on March 18, up 9% day over day and the highest since July 2022.

"The United States through, a maritime reinsurance facility, is working to restore market confidence and resume energy and commercial trade," the US delegation to the IMO said during the meeting of the council March 18.

The delegation said it welcomes complementary efforts, including a proposal before the council to encourage a safe maritime corridor for the safe evacuation of merchant ships from affected areas. "We urge partners around the world to support efforts to reopen the strait," the delegation said.

Transit through the strait has slowed to a trickle. Only two vessels transited it March 18, down from an average of 135/day during February, according to data from S&P Global Commodities at Sea.

However, Iran's delegation to the IMO said March 18 the strait was not closed; "The Strait of Hormuz is open for all vessels." However, the delegation said that due to attacks by the US and Israel, "international navigation has faced some problems and appropriate measures should be considered and taken for security, safety of ships and seafarers."