Iran says 'non-hostile' ships can pass safely through Hormuz
What's the story
Iran has announced that "non-hostile" vessels can now transit the Strait of Hormuz, a vital waterway for global oil and gas supplies. The announcement comes amid a major disruption in maritime traffic due to the ongoing United States-Israel conflict with Iran. The Iranian Ministry of Foreign Affairs sent a note to the United Nations Security Council and International Maritime Organization (IMO) detailing this decision.
Transit conditions
Conditions for passage
The Iranian note stated that "non-hostile vessels, including those belonging to or associated with other States," can pass through the strait "provided that they neither participate in nor support acts of aggression against Iran and fully comply with the declared safety and security regulations." The passage is only allowed in coordination with competent Iranian authorities. The note further clarified that assets belonging to the US or Israel don't qualify for this passage.
Traffic decline
Maritime traffic through strait declines
Before the conflict started on February 28, an average of 120 vessels transited the strait daily. However, only five vessels were tracked passing through on Monday, according to maritime intelligence firm Windward. The collapse of commerce in the strait has triggered an increase in global energy costs, with some analysts forecasting that oil may reach $150 or even $200 per barrel if the waterway stays effectively closed.
Market reaction
Brent crude prices fall on hopes of peace talks
Brent crude prices, which had hovered above $100 per barrel for most of March, fell over 9% on Wednesday after reports of a potential end to hostilities. Major Asian stock indexes also opened higher on hopes for peace talks between the US and Iran. The New York Times, Reuters and Israel's Channel 12 reported that the Trump administration had sent Iran a 15-point plan to end the war.