Shipping Companies Avoid US-Guided Transit Scheme Through Strait of Hormuz After Iranian Attacks

Shipping companies are refusing to participate in a US-guided transit scheme through the Strait of Hormuz following Iranian attacks on vessels in the area, according to a Reuters report citing shipping and maritime industry sources. The attacks targeted ships that attempted to transit the south corridor of the strait, which the US had urged them to use, reportedly with promises of compensation for any damage. In contrast, over 200 vessels have registered with the Persian Gulf Security Agreement (PGSA) for passage through the north corridor, which is under Iranian oversight. The development highlights escalating tensions in the strategic waterway, through which about 20% of global oil passes. The US military had established the transit scheme to ensure safe passage after previous Iranian seizures and attacks on commercial shipping. The refusal by shipping companies underscores growing distrust in US security guarantees and a shift toward Iranian-led transit arrangements.

Global Impact

Geopolitically, the refusal of shipping companies to use the US-guided scheme undermines American influence in the Gulf and strengthens Iran's position as a de facto guarantor of safe passage through the Strait of Hormuz. Economically, the shift could fragment maritime insurance markets, with higher premiums for south corridor transits and lower costs for Iranian-escorted routes, potentially affecting global oil and LNG shipping costs.