Why the US-Iran deal may fail to revive shipping through the Strait of Hormuz

AI Summary

The US-Iran deal intends to reopen the Strait of Hormuz, but shipping companies such as Maersk remain cautious due to lingering security concerns and the deal's unclear durability. The agreement's impact on global shipping will depend on the continuation of US sanctions relief.

As US President Donald Trump moves to reopen the Strait of Hormuz through a peace deal with Iran, major shipping companies such as Maersk are likely to stop short of resuming normal operations in the near term amid lingering concerns about the waterway’s security and the durability of the agreement, according to observers. Some industry insiders said the deal’s impact on the global shipping industry would hinge on whether the United States extended sanctions relief beyond the initial agreement,...