Two Key Things That Need to Happen Before Strait of Hormuz Traffic Can Return to Prewar Levels

Maritime attorney Sean Pribyl spoke with MarketWatch about what needs to happen before vessel traffic through the Strait of Hormuz can return to prewar levels. A potential U.S.-Iran peace framework provides relief for the global shipping industry, but several conditions must be met before companies can consider the area clear. Mr. Pribyl discussed the operational, contractual and insurance challenges that may continue to affect shippers, vessel owners and insurers, including port congestion, scheduling disruptions, renegotiated charter contracts and elevated war risk insurance premiums. He added that war risk coverage may remain a key factor in how quickly vessel owners resume normal operations through the strait.

He said that insurers will need confidence that vessels can transit "without threat of tolls, seizures or kinetic strikes," and would require "demonstrated safe passage over a sustained period."

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