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Shippers seek clarifications on the Hormuz crossing

Shipping companies welcomed Iran's announcement that the Strait of Hormuz was open, but they said a clarification would be needed before ships could enter the Gulf.

The Foreign Minister Abbas Araqchi announced on Friday that all commercial vessels were welcome to use the Strait of Hormuz during a 10-day ceasefire agreement in Lebanon. This led to a drop in the price of oil and other commodities, while the stock market rose.

Arsenio Dominguez, Secretary-General of UN shipping agency 'the International Maritime Organization' (IMO), said: "We are currently evaluating the recent announcement regarding the reopening of Strait of Hormuz in terms of compliance with freedom of navigation and safe passage for all merchant ships."

The Norwegian Shipowners' Association stated that several things must be clarified prior to any ships being able to transit the strait. These include the?presence and conditions of Iranians', the practical implementation, as well as the Iranian conditions.

Knut Arild Harteide, CEO of the association that represents 130 companies and 1,500 vessels, said: "If this is a step in the right direction, then it's a positive development."

Hapag-Lloyd, a German shipping company, was assessing the situation. "We will probably pass soon", said a spokesperson.

CMA CGM and Maersk, the French shipper, were not available to comment immediately.

Frontline, a Norwegian oil tanker company, declined to comment.

A senior Iranian official said that all commercial ships, including U.S. vessels, can pass through the strait. However, their plans must be coordinated with Iran’s Islamic Revolutionary Guard Corps.

Officials said that the transit would only be allowed on routes that Iran considers safe. Military vessels are still prohibited.

U.S. president Donald 'Trump' said on Friday that Iran had agreed not to close the strait ever again and was clearing sea mines out of the strait.

A U.S. Navy advisor said that the threat posed by mines in some parts of the strait was not fully understood. Ships should avoid the area, the advisory stated.

The strait is one of the world's major maritime chokepoints. Shipping companies have been forced to suspend sailings and reroute their cargo, and use expensive workarounds in order to keep goods flowing into and out the Gulf. (Reporting from Gdansk by Jesus Calero, writing by Louise Rasmussen, Nerijus Adomatis, editing by Terje Solsvik, Louise Heavens and Jason Neely.)

(source: Reuters)