Maritime expert Matt Wright has warned that the dangers associated with traveling through the Strait of Hormuz persist, even with the United States' plans to escort ships through this critical maritime passage. Increased tensions in the Middle East and various attacks on vessels have noticeably diminished ship movements across this vital corridor, a significant route for global oil trade. Wright pointed out that the ongoing threats posed by Iran have made many shipping operators hesitant to navigate the strait, leading to considerable delays or leaving several vessels stranded in the Middle East Gulf.
In an interview with ARISE News on Thursday, Wright clarified that although the US has offered to provide naval escorts and reduce insurance premiums for vessels in the area, these measures may not suffice to restore confidence among shipowners. "The threat from Iran still remains very, very high," he stated, adding that the security situation near the strait remains highly unstable.
He elaborated that while the Strait of Hormuz is not officially shut down, it has effectively become impassable for many vessels due to the high probability of attacks. "The Strait of Hormuz is not formally closed. It is closed sort of de facto," he said, mentioning that the risk of further hostilities is discouraging ships from using this route.
Wright emphasized that over ten vessels have been targeted in recent incidents across the Gulf of Oman and the Middle East Gulf, showcasing the increasingly advanced military capabilities of Iran. These assaults have raised widespread alarm among shipping companies, who are prioritizing the safety of their crew over their commercial interests.
Additionally, he warned that employing naval escorts might inadvertently heighten risks for vessels. "The use of a naval escort could even be more risky because you could be attracting more attention to those vessels," he noted.
Despite the prevailing tensions, Wright acknowledged that maritime insurance coverage remains available for ships operating in the region, as insurers are historically known to protect vessels amid conflicts.
However, he remarked that operational costs in the Gulf have surged as insurers adjust their premiums to reflect escalating risks. "There is no risk of vessels not being insured," he explained. "There will be a premium. Vessels are now going to have to pay more if they’re operating in that area."
Current shipping data indicates that numerous vessels within the Middle East Gulf have already loaded crude oil and other cargo, yet they cannot exit due to security apprehensions. Wright noted these ships are essentially biding their time for safer conditions before attempting to transit the Strait of Hormuz.
Some shipping operators have started rerouting vessels to alternative paths, including ports along the Red Sea, where they can transport crude oil via pipelines from Saudi Arabia’s eastern regions. However, Wright cautioned that the Red Sea also presents security threats due to the presence of Houthi militants in Yemen.
Looking to the future, Wright believes that shipping operations through the Strait of Hormuz are unlikely to rebound until there is a significant reduction in hostilities between Iran and Western nations. “We do anticipate that there will be some return to transits,” he stated, mentioning that a diplomatic resolution or a decrease in attacks could gradually facilitate a return to normal shipping activities.
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