Hormuz passage: Underwater mine threat, war-risk insurance remain high

Global shipping associations are insisting on independent confirmation that sea lanes — particularly in the Strait of Hormuz — are free of naval mines and other hazards before they fully resume normal operations, amid lingering risks following months of maritime conflict in the Middle East.

Industry groups say that even after tentative political de-escalation efforts, operators will not return at scale without verified mine clearance, safe navigation corridors, and sustained security guarantees, Reuters reported.

Maritime security experts, meanwhile, warn that underwater mines and unexploded ordnance remain among the most serious threats to commercial shipping, with clearance operations potentially taking weeks in heavily contested waters.

More ships are being allowed through the Strait of Hormuz following the announcement of a US-Iran peace deal.

News agencies reported that the situation has improved significantly compared with the near-total shutdown seen earlier in the conflict.

While commercial shipping has not yet returned to normal operations, a number of vessels have begun transiting the strait again.

In one of the clearest signs that commercial traffic is cautiously resuming, an Indian LNG tanker successfully crossed the Strait of Hormuz this week.

Shipping companies and tanker operators are evaluating routes and security conditions before sending larger numbers of vessels through.

The agreement reportedly calls for reopening the strait and restoring maritime traffic. Implementation is still underway.

Real-time tracking data suggested only minimal movement.

Maritime analytics firm Kpler recorded just one confirmed commercial transit at around 1400 GMT: the Malta-flagged LNG carrier Disha, carrying approximately 60,000 tonnes of liquefied natural gas from Qatar to India.

A second vessel, the bulk carrier Kaiser, also appeared to have exited the strait based on Automatic Identification System (AIS) signals, though its status was less clear.

Despite these isolated crossings, more than 500 commercial vessels were still waiting in the Arabian Gulf, effectively held in a holding pattern as shipping companies await clearer security guarantees and insurance approval to resume normal operations.

The disruption reflects how sharply traffic has fallen during the conflict.

While diplomatic momentum has raised expectations of a gradual reopening, shipping remains heavily constrained, with operators still cautious about mines, naval activity, and war-risk insurance coverage before fully restoring transit schedules

Global oil benchmarks, meanwhile, tumbled across the board on Monday evening, with WTI crude sliding to $80.75 (-4.9%) and Brent to $83.38 (-4.5%), as traders rapidly unwound a geopolitical risk premium built up during weeks of conflict in the Middle East.

The broad sell-off comes after reports of a US–Iran de-escalation or preliminary peace framework, including expectations of reduced military confrontation and a possible easing of pressure on maritime flows through the Strait of Hormuz — one of the world’s most critical oil chokepoints.

That shift immediately triggered a repricing of global supply risk.

Updates on the major global crude oil benchmarks:

The current price movement shows a pattern, say industry analysts, i.e. the closer the crude benchmark is tied to Middle East flows, the sharper the decline.