Iran Exempts Passage Through the Strait of Hormuz for 60 Days During Negotiations. As part of an agreement reached recently, the Iranian authorities have declared that they will provide free passage through the Strait of Hormuz during a 60-day negotiation period.
This initiative has been taken with a view to facilitating the movement of vessels through this very strategic and sensitive water corridor. As per this new arrangement, no fee will be levied on vessels transiting through the strait, concerning security, safety, environmental services or insurance.
However, those ships wishing to pass through the Strait of Hormuz need to apply for transit at least 48 hours before their entry into the strait owing to navigational risks in some portions of the strait.
It can be noted that the shipping activities have started picking up now after a period of disruption in the region.Based on the maritime monitoring data, there were 25 commercial ships traversing the strait yesterday, which was the highest traffic seen since mid-April.
The Strait of Hormuz is responsible for around one-fifth of world’s oil transportation, and therefore, its security is crucial to the international energy market. The negotiations are being watched very closely by investors and shippers because any success will contribute to alleviating fears of disruption and bringing down oil prices.
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