The US-Iran war almost stopped shipping in Hormuz again

Echoing the UN Secretary General Antonio Guterres‘vigilance over resumption of attacks and counterattacks between US and Iran, UN International Maritime Organization (IMO) Council Member States on Thursday condemns Iran for “constant threats” and alleged attacks on several Gulf states and their territorial waters.

In calls to protect “vital shipping lanes”, several countries – including Bahrain, France, Germany and Saudi Arabia – underscored the impact on maritime transport “particularly in and around the Strait of Hormuz”, which is a key global energy route.

In a separate filing, Iran alleged “armed interference against Iranian commercial vessels” and “aggression by the United States” and Israel.

The agency’s Secretary General Arsenio Dominguez insisting that all transit through the Straits should be avoided “until the necessary safety conditions are in place” and noted that the evacuation of stranded seafarers would remain postponed for safety reasons.

According to IMO data, A total of 136 ships have been evacuated along with 2,900 sailors to date.

Deadly casualties

According to Iranian health authorities, 14 people were killed in the last two days of clashes, while dozens more were injured in attacks in five provinces.

Tuesday’s reported attack in the Strait of Hormuz also caused a temporary spike in crude oil prices which recovered on Thursday to around $77 a barrel, still higher than pre-war levels.

The new hostilities came after three merchant ships were reportedly attacked on Tuesday while transiting the Strait of Hormuz, despite a ceasefire agreement signed by Iran and the US on June 17.

The ceasefire deal is under pressure

The 14-point memorandum of understanding calls for “an immediate and permanent cessation of military operations on all fronts, including in Lebanon”.

The agreement also sets out 60 days of negotiations to reach a “final agreement” on issues including Iran’s enrichment of uranium, which should also reiterate that Iran has no intention of developing nuclear weapons.

Other conditions listed in the text of the memorandum include reopening the Strait of Hormuz to all shipping and easing US and UN agreements. Security Council sanctions against Middle Eastern countries.

This waterway carries about a fifth of global oil and gas supplies and before the war, around 130 commercial ships passed through it every day.

Global economy ‘very resilient’

Head of the International Energy Agency (IAEA), International Monetary Fund (IMF), The World Bank Group and the World Trade Organization (WTO) said on Wednesday that the global economy had generally been able to withstand the shock of the escalating war in the Middle East, even as some countries experienced slowing growth and rising inflation.

Meeting as part of a coordination group established in April, the four institutions encouraged further progress towards conflict resolution and the reopening of the Strait of Hormuz, and noted that fuel and fertilizer prices had declined since June.

They urged the government to uphold freedom of navigation and strengthen energy and food security as uncertainty about the economic impact of the conflict persists.