Vessel Movements through the Strait of Hormuz Post US-Iran Peace MoU
Passage Applications and Shares
Following the June 17 US-Iran peace MoU, a significant number of merchant vessels applied for passage through Iran-recommended routes across the Strait of Hormuz.
- Over 200 non-Iranian vessels coordinated with the Persian Gulf Strait Authority (PGSA) for passage permits and insurance.
- India-bound vessels accounted for 20% of the exit requests, second to China's 21%.
- Entry requests saw India leading with a 21% share, followed closely by China at 19%.
- Other Asian countries and intra-region movements also had significant shares.
Maritime Traffic Trends
Despite the MoU, tensions led to a significant decline in vessel movements, though they have not completely ceased.
- The strait's closure by Iran is a strategic response amidst the resurfaced conflicts.
- India and China are pivotal in the trade through the strait, especially in energy shipments.
- India's energy dependency on West Asia is substantial: 40% crude oil, 60% LNG, and 90% LPG imports.
Global Maritime Influence and Tensions
The strait serves as a battleground for influence between Iran and the US, affecting maritime routes.
- The US encourages routes via Oman, conflicting with Iranian-designated lanes.
- Iran has targeted vessels attempting the Omani route.
- Iran plans to impose a service fee for transits, with the US previously considering a 20% charge for safe passage.
Statistics on Vessel Transits and Processing
- 53% of transit applications were for exiting the Persian Gulf, while 47% were for entering.
- The PGSA approved 79% of applications, with a 50-hour average processing time.
- Tanker vessels had the highest share of applications at 41%.
- Recent vessel crossings have significantly decreased, with only 14 crossings on July 12.
This data highlights the strategic and economic importance of the Strait of Hormuz, especially for Asian economies like India and China, and underscores the geopolitical tensions influencing maritime traffic in this critical region.
