Strait of Hormuz Transit Will Take ‘Weeks’ to Resume, Mitsui OSK CEO Tells FT

Why It Matters

A prolonged Hormuz closure squeezes global oil and gas markets, lifts freight rates and forces carriers onto longer, costlier routes, impacting energy‑dependent economies worldwide.

Key Takeaways

• Mitsui OSK fleet exceeds 900 vessels across bulk, tanker, ferry segments.
• Transit through Hormuz halted since Feb 28, affecting ~20% of oil/LNG.
• CEO says resumption likely in weeks, not immediate after US‑Iran deal.
• Delayed restart could keep freight rates elevated and pressure alternative routes.

Pulse Analysis

The Strait of Hormuz has long been a chokepoint for energy logistics, funneling about 20% of the world’s oil and liquefied natural gas. Since the Feb 28 US‑Israeli strikes that sparked a brief war with Iran, commercial traffic has virtually stopped, disrupting supply chains for commodities ranging from crude to aluminium. The shutdown forces vessels onto the longer Southern Highway or around the Cape of Good Hope, adding days and millions of dollars to freight costs and tightening global energy markets.

Mitsui OSK Lines, one of Japan’s three major shipping conglomerates, operates a fleet of more than 900 vessels. CEO Jotaro Tamura told the Financial Times that shippers will only return to the strait once a US‑Iran agreement proves "material"—meaning it translates into tangible security on the waterway. Even after President Donald Trump announced a tentative deal, Tamura cautioned that confidence will take “a couple of weeks or if not a month” to build, reflecting the industry’s low tolerance for risk in high‑value routes.

The extended hiatus is already reshaping freight markets. Spot rates for crude tankers and bulk carriers have surged as carriers compete for limited alternative lanes, while insurers raise premiums for the heightened geopolitical exposure. Energy‑intensive economies may face higher import costs, and oil‑price volatility could rise as market participants price in the uncertainty of a delayed Hormuz reopening. Analysts will watch the next few weeks closely, as the pace of diplomatic implementation will dictate whether the shipping sector can revert to pre‑conflict volumes or must adapt to a new, costlier normal.