Lars Barstad, CEO of Frontline, indicated that a credible agreement between the U.S. and Iran could lead to a substantial rise in tanker traffic through the Strait of Hormuz, which is currently limited to about five to ten vessels daily due to security concerns.
He noted that while traffic may not return to prewar levels of 130 to 140 vessels per day immediately, the potential for increased transits is significant, especially as Gulf states are eager to export crude oil amid full storage facilities.
Barstad mentioned that approximately 10% of the world's largest tankers are currently stuck in the Gulf, each capable of carrying around 2 million barrels of oil. He highlighted that logistical challenges, such as repositioning tankers and potential damage to oil wells, could hinder a quick recovery in oil flows.
The threat level in the region remains high, with the Joint Maritime Information Center recently downgrading the risk assessment but still warning of elevated threats. Barstad also pointed out that shippers are adapting to the situation, and while the idea of transit fees has been discussed, the industry is likely to adjust if necessary.
Overall, the resolution of tensions between the U.S. and Iran could have a significant impact on oil supply and shipping dynamics in the region