Oil to be released first, but fertilizer delayed... Hormuz normalization 'weeks, not days'

The Strait of Hormuz, a critical global oil transit route, faces continued logistical challenges despite a temporary peace agreement between the United States and Iran, according to market analysis.

While the agreement aims to ease tensions, a full normalization of maritime traffic is not expected soon. Reports suggest that oil shipments might be the first to resume, but other vital cargo, such as fertilizer raw materials and containers, could experience disruptions lasting several weeks. Liquefied natural gas (LNG) shipments are projected to face delays extending to the end of the year.

The specifics of the U.S.-Iran accord have not yet been made public. Significant differences persist between the two nations regarding various aspects, including the imposition of transit fees. An Iranian foreign ministry spokesperson indicated that while Iran does not intend to charge transit tolls, it plans to levy fees for navigation support, environmental protection, and vessel insurance.

Before the recent conflict, the Strait of Hormuz was a crucial artery, handling approximately 20% of the world's crude oil and petroleum products. The ongoing disruptions highlight the geopolitical sensitivity of the region and the complex negotiations required to ensure the smooth flow of international trade.