🚨 Iran Votes to Close Strait of Hormuz: Global Shipping on Alert

Published: June 23, 2025
Region: Strait of Hormuz / Persian Gulf

📌 Overview

In a dramatic escalation, Iran’s parliament has voted to close the Strait of Hormuz, a key chokepoint for global oil and gas exports. The decision awaits approval by Iran’s Supreme National Security Council, but even the vote alone has triggered alarm across the maritime and energy sectors.

The Strait of Hormuz handles roughly 20% of the world’s oil supply and about one-third of all seaborne crude. This move—seen as a retaliatory measure amid rising geopolitical tensions—has the potential to spike oil prices, reroute shipping, and increase insurance and freight costs.

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⚠️ Impacts for Shipping and Maritime Operators

• Route Disruption: Tankers may be forced to reroute via longer and more expensive paths (e.g. around Africa via the Cape of Good Hope).

• Cost Increase: Tanker freight rates are already rising, and insurance premiums for transiting Hormuz are expected to surge.

• Delays and Logistical Bottlenecks: Port congestion, delayed cargoes, and cascading effects on global trade are highly likely.

• Security Threats: The risk of vessel seizure or electronic warfare (e.g. GPS spoofing) remains elevated.

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🔐 Recommended Safety Measures

✅ For Shipowners & Operators:

• Reassess Voyage Planning
  Avoid or minimize time spent in Iranian waters. Use UKMTO updates to plan secure passage.

• Enhance Watchkeeping and Evasive Protocols
  Increase bridge team vigilance and readiness drills. Use non-GPS navigation techniques when GPS jamming is suspected.

• Check Political Risk Insurance
  Verify war risk coverages and revalidate navigational clauses with underwriters.

• Coordinate with Coalition Forces
  Register transits with UKMTO, IMSC, and EMASoH. Follow coalition naval guidance closely.

✅ For Crews:

• Conduct drills for emergency procedures in case of boarding or engine shutdown.

• Reinforce anti-piracy watch routines.

• Keep SATCOM and emergency communication systems functional and tested.

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🌍 Broader Implications

Analysts caution that Iran lacks both the legal and practical ability to fully enforce a closure—but even the threat is enough to create volatility.
This situation is reminiscent of previous incidents involving the seizure of tankers, GPS spoofing, and regional naval exercises that affected maritime safety.

Oil prices have already surged to near $98/barrel. Global shipping alliances and the IMO are closely monitoring developments.

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📣 Final Note

SHIP IP advises all clients operating in or near the Gulf region to review safety management systems, coordinate with naval authorities, and ensure crew readiness under high-risk conditions.

📧 For custom routing or safety consultancy, contact: support@shipip.com