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Stocks soar, but shipping stays cautious as US-Iran deal promises Hormuz reopening

  • Chinese shipping stocks surged on news of a US-Iran deal to reopen the Strait of Hormuz, with Cosco Shipping Energy jumping more than 20% in Hong Kong
  • Shipowners and insurers signalled they would be in no rush to return, with a Hong Kong-flagged tanker struck by a projectile near the strait only days earlier underscoring the risks that remain
  • BIMCO warned the US and Iranian statements are too vague on timings and safe routes to act on, the threat of naval mines persists and an orderly restart should ideally be coordinated by a neutral body such as the UN
  • The agreement amounts to a 60-day ceasefire requiring a still-difficult nuclear deal, leaving the critical maritime chokepoint in a holding pattern as the industry waits for solid evidence that the region is safe

Investors are excited by the US-Iran ceasefire, but ships and insurers aren’t convinced a Hormuz reopening is at hand

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