The signing of a memorandum of understanding (MoU) between Iran and the United States has been welcomed by the maritime insurance community, but industry leaders caution that a return to normal shipping operations through the Strait of Hormuz remains far from immediate.
According to the Lloyd’s Market Association (LMA), several critical legal, operational and safety issues must be addressed before vessels stranded in the Arabian Gulf can safely resume transits through one of the world’s most strategically important waterways.
In a joint statement, Sheila Cameron, Chief Executive Officer of the LMA, and Neil Roberts, Head of Marine and Aviation at the association and Secretary of its Joint War Committee, described the agreement as an encouraging development. However, they stressed that the reopening of trade routes will require far more than a diplomatic breakthrough.
One of the most pressing concerns remains the lack of clarity surrounding sanctions and regulatory compliance. The MoU references Iranian oil exports and indicates that no transit tolls will be charged, but insurers say detailed guidance from the United States, the European Union and the United Kingdom is essential before shipping companies can confidently resume business with Iranian-linked entities.
The issue is particularly sensitive given the complex web of sanctions that continues to affect Iranian banks, ports, shipping companies and energy exports. Shipping operators, insurers and financial institutions will need clear confirmation regarding which restrictions have been lifted and which remain in force to avoid potential violations and severe penalties.
The LMA also stressed that, aside from regulatory issues, there was a need for cooperation on navigation management between Iran, the United States, Oman and other local players. Maritime experts have repeatedly warned that the reopening of the strait could unleash a surge of vessels trying to transit at the same time, causing congestion and increased navigational hazards in the narrow waterway.
Mine-clearance verification is another major priority. While there is no confirmed evidence that commercial vessels were damaged by mines during the conflict, security concerns remain significant. Reports of potential minelaying activity and previous military operations targeting Iranian minelayers have led industry observers to estimate that confirming the waterway’s safety could take anywhere from 30 to 60 days.
The association also underlined the need to restore emergency maritime support services, including salvage operations and assistance for vessels and crews operating in Iranian waters. Such services will be particularly important during the initial reopening phase, when a large number of ships are expected to move through the region after months of disruption.
Shipowners are also concerned about vessel readiness. With many ships anchored for long periods, questions are raised about fuel supplies, onboard provisions, hull conditions and the operational status of navigation systems. The LMA noted that some vessels may require technical inspections and maintenance before undertaking a transit through Hormuz.
In addition, port infrastructure across the region must return to full operational capacity. Pilotage services, berthing availability, bunkering operations and cargo-handling facilities will all need to function efficiently to support the resumption of trade flows.
Despite the diplomatic progress represented by the Iran-US agreement, the LMA believes the recovery process will be gradual. Supply chains have been heavily disrupted, vessels are positioned far from their intended routes, and restoring global shipping schedules will take time.
“The road to recovery in the Gulf will be a long and complicated one,” the association noted, comparing the process to rebuilding transport networks after a major disruption, where returning to normal operations often takes months even after restrictions have been lifted.
For the maritime sector, the message is clear: while the agreement offers hope for renewed stability in the Gulf, practical realities on the water mean that a full return to normality remains some distance away.
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