Largest tanker operator cautious on US-Iran deal: Strait of Hormuz flow could take 'weeks' or 'month'

The head of the world’s largest tanker operator has warned that shipowners will not resume transit through the Strait of Hormuz for “weeks” until they are convinced the US-Iran deal is “substantial”.

Jotaro Tamura, chief executive of Japan’s Mitsui OSK Lines, told the Financial Times that many operators would wait to resume sailings despite the US-Iran deal to reopen the strait.

“What will have to happen is not just a simple agreement between the relevant countries, but it has to be material and translated into actual situations in the Strait of Hormuz so that shipping lines can move comfortably,” Mitsui OSK’s Jotaro Tamura said in an interview published on Tuesday.

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Resuming tanker operations in the Strait of Hormuz could take “weeks” or even “a month” as shipowners are cautious and wait until they are convinced the deal is significant.

Shipping lines need the US-Iran deal to be more than just an agreement, but to be substantive and reflect real-life situations to ensure security and confidence in transit.

Tanker operators are hesitant because there have been several false starts in reopening the strait and they need assurances of safety before resuming navigation.

President Trump’s claims that the Strait of Hormuz is safe and free highlight a departure from skepticism in the industry, as many shippers still await further clarification before resuming operations.

The US-Iran deal aims to reopen the Strait of Hormuz, a key shipping route for global oil supplies, but the actual normalization of oil supplies may not happen until late July due to logistical issues.

Read also | What does the reopening of the Strait of Hormuz mean for the Indian stock market?

Tamura noted that since the outbreak of conflict in the Middle East in late February, there have been several false starts regarding reopening the waterway.

“Given the experience of the last few months, I think it’s reasonable to assume that it could take at least a few weeks, if not a month,” he said.

What Trump said about opening the Strait of Hormuz

Tamura made the claim despite US President Donald Trump saying there was a “safe, secure and unspoiled” route through the strait.

“Ships are starting to move, many loaded with oil, from the Strait of Hormuz. They are sailing the southern ‘highway’ which is perfectly safe, secure and untouched. There are other areas of travel!!!,” Trump wrote on TRUTH Social on Monday.

Trump has claimed in a series of posts that the deal with the Islamic Republic of Iran is “now done”.

Read also | US-Iran deal eases Hormuz shipping, boosts India’s trade and energy outlook

It also “fully approved the free opening of the Strait of Hormuz, and at the same time authorized the immediate lifting of the United States naval blockade.”

He said, “Ships of the world, start your engines. Let the oil flow!”

Trump said the deal would be signed on Friday. “With the opening of the strait following the signing of the agreement on Friday, to clear the mines, oil will once again flow at both ends for the region and the world,” the president added.

He also claimed that Iran had agreed to never have a nuclear weapon. “Also the story that the US is paying Iran $300 million is fake news put out by the Democrats!!!m,” he said.

The interim deal between the US and Iran is likely to extend a tenuous truce announced in April for another 60 days and reopen the Strait of Hormuz, which Iran has effectively blocked since the US and Israel attacked Iran in February, Reuters reported.

Read also | US-Iran deal eases Hormuz shipping, boosts India’s trade and energy outlook

Negotiators would tackle difficult issues such as the future of Iran’s nuclear program during the next phase of talks, which Iranian Foreign Minister Abbas Araqchi said would begin in Switzerland on Friday after the formal signing of the framework agreement.

US President Donald Trump said on Tuesday that the Iran deal was done and would move to a second phase that he said would be “easier”, speaking to reporters during a meeting with Qatar’s emir in Evian-les-Bains, France.