Hormuz Reopening Delayed: Shipping Lines Face Rising Costs and Safety Risks

Key Details Hundreds of vessels remain trapped in the Persian Gulf as the Strait of Hormuz stays largely closed more than two months into the Iran conflict. President Trump's "Project Freedom" initiative briefly allowed two ships to transit in early May before being paused to pursue diplomatic solutions. Major shipping operators continue refusing transit due to ongoing threats from Iranian speedboats and drones. Why It Matters Before the war, 100-135 vessels daily passed through the critical waterway. That flow has slowed to a trickle as Iran requires vessels to undergo vetting by the Islamic Revolutionary Guards Corps, including passage near Iranian coastlines and crew/cargo disclosure. Some operators face sanctions risks for complying with Iranian payment demands. Escalating Costs Over 1,550 vessels carrying approximately 22,500 mariners are currently stranded in the Persian Gulf. Stranded cargo includes oil, fertilizer, and other essential goods. The U.S. Navy is blockading Iranian ports to pressure Iran, further complicating the situation. Insurance and Risk Assessment Maritime attorneys note shippers and insurers are still evaluating protection and indemnity coverage alongside war risk insurance. "We're not anywhere near returning to free flow of traffic," according to maritime legal experts. Safety concerns remain the primary obstacle to normalizing operations.