Strait of Hormuz shipping threat lowered to moderate amid ongoing mine clearing

Tanker traffic has resumed through the Strait of Hormuz subsequent to a U.S.-Iran agreement, though commercial confidence is described as fragile. Insurers and shipowners are actively assessing the security situation in the region. The UK Maritime Trade Operations Centre has reduced its threat assessment for the Strait of Hormuz to a moderate level. However, mariners are still advised to remain vigilant due to ongoing mine clearing operations. Approximately 80 mines are reported to be blocking the main shipping route, and a full resumption of normal traffic is not anticipated for several months. Pakistan's National Hydrographic Office has also reported the presence of a mine in the Strait of Hormuz area, according to a notice issued via a naval source. In a significant development aimed at bolstering security and commerce, Lloyd's of London, with Chubb acting as the lead underwriter, has launched a new $400 million war risk facility. This initiative is designed to provide insurance capacity for vessels and cargo transiting the Strait of Hormuz, supporting global commerce in the wake of the peace deal between the U.S. and Iran. The durability of the recent U.S.-Iran deal is considered to be at risk, with Lebanon identified as a significant factor.