What Members need to know 

A two-week ceasefire between the United States and Iran was announced on 8 April 2026.  The ceasefire is conditional on the opening of the Strait of Hormuz. Iran have confirmed that passage would be permitted subject to coordination with its armed forces, whilst reasserting what it characterised as its dominion over the waterway. On its face, this is a welcome de-escalation. However, subsequent events have materially undermined confidence in the announcement. 

Operational risk assessment  

The practical mechanics of Iran’s coordination requirement, including any vetting, routing, scheduling or advance notification requirements, have not been communicated to the shipping industry. Iran’s vessel screening regime, which assesses ownership, management, insurance and charter history for US and Israeli affiliation, appears to remain fully operative. Vessels with any connection to US or Israeli interests may be refused passage or detained. 

Members with vessels currently in the Gulf should note that a significant number of ships are expected to attempt to exit the Strait as soon as conditions permit, creating both congestion and navigational risk in an already narrow waterway. For inbound traffic, the position is different — unless the ceasefire window is extended, there is unlikely to be a significant influx of vessels into the Gulf, as owners are reluctant to risk re-entrapment.  

Implications for cover 

War risk. The JWC Listed Areas designation covering the Arabian Gulf, Strait of Hormuz, Gulf of Oman, Northern Arabian Sea and adjacent waters remains in effect. There is no indication that the JWC intends to revise those designations, nor would this be expected until the operational picture has stabilised over a sustained period. Headline additional war risk premiums are not expected to reduce in the near term, and some hull war risk markets may decline cover for Hormuz transits entirely. Members are advised to consult their hull war risk brokers before committing to any voyage. 

P&I cover. Cover for vessels trading in or through listed or sanctioned areas may be subject to specific conditions, exclusions or prior notification requirements. Any member considering a transit is advised to contact the Club to confirm cover status before proceeding. 

Sanctions. All US (OFAC), EU, UK (OFSI) and UN sanctions programmes relating to Iran remain in full force. The ceasefire does not alter the sanctions landscape. It should be noted that Iran’s coordination requirement may itself create sanctions exposure, particularly where interaction with the IRGC or IRGC-affiliated entities is involved. The Club’s AFC team is available to advise on specific queries. 

Advisory

Transit of the Strait of Hormuz is not to be considered safe at this time. Members are strongly advised against any prospective transit until: 

(a) the IRGC’s threat to target and destroy commercial vessels has been formally withdrawn or superseded by a verifiable safe-passage framework; 

(b) the ceasefire has demonstrated durability without further hostilities; 

(c) the sanctions implications of any Iranian coordination process have been clarified; and 

(d) the Club has completed its consultation with regional correspondents, which is in progress. 

Further guidance will be issued as the situation develops. Members with queries are encouraged to contact the Club. 

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This alert is issued for the general guidance of members and does not constitute legal advice. The Club reserves the right to update or revise this guidance at any time as circumstances develop.