Summary
- Iranian media reported that the transit permit application system for ships passing through the Strait of Hormuz has been fully opened.
- Markets view traffic through the Strait of Hormuz as a key variable affecting global oil prices and risk-asset sentiment.
- If the permit process operates normally, concerns about energy supply disruptions could ease somewhat, but uncertainty over ceasefire talks remains.
Iranian media reported that the application system for vessel transit permits through the Strait of Hormuz has been fully opened. The vessel traffic regime is drawing renewed attention after fears of a possible closure of the waterway triggered sharp swings in global oil prices.
Odaily, a cryptocurrency-focused media outlet, reported on June 2 that Iranian media said the permit application system for ships transiting the Strait of Hormuz had been fully opened.
Under the system, shipowners and captains worldwide can submit transit applications 24 hours a day. Vessels can apply to pass through the strait through an electronic platform set up by the relevant authorities, and those that pass screening will receive transit approval.
The report comes as tensions around the Strait of Hormuz continue. Iranian local media had earlier reported that Iran and the so-called Axis of Resistance had decided to fully close the strait.
Markets regard traffic through the Strait of Hormuz as a key factor for global oil prices and sentiment toward risk assets. If the permit process operates normally, concerns about disruptions to energy supplies could ease somewhat. Uncertainty over ceasefire talks between the US and Iran, however, remains.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
