Over 1,200 cargo ships stranded due to Strait of Hormuz closure

London (ANTARA) - The closure of the Strait of Hormuz has caused more than 1,200 cargo ships, transporting goods worth $125 billion, to be stranded, according to the Financial Times on Wednesday (24/6), based on the latest report from insurance company Allianz.

Justus Heinrich, Head of Marine Underwriting at Allianz, told the British newspaper that the closure of the strait has altered the insurance company’s perception of risk regarding narrow strategic shipping lanes.

“We have always discussed realistic disaster scenarios, and now we are facing a real disaster scenario such as this,” he was quoted by the newspaper as saying.

Shipping traffic is gradually recovering following the announcement of an agreement between the United States (US) and Iran to reopen the Strait of Hormuz. Data from Lloyd’s List Intelligence shows that 69 ships sailed out of the Persian Gulf in the week ending 21 June, up from just 24 ships the previous week, marking the highest weekly number of sailings since the US-Iran conflict erupted in February.

The conflict has resulted in many casualties and has triggered ongoing economic losses and a crew crisis. According to the International Maritime Organization (IMO), the conflict has killed 14 sailors and triggered missile attacks on more than 40 ships, most of which were oil tankers.