Oil prices rise after vessel reports being hit in Strait of Hormuz

The International Chamber of Commerce (ICC) is developing a neutral framework to help reopen the Strait of Hormuz, following the success of the Black Sea Grain Initiative. The proposed mechanism, led by the United Nations Office for Project Services (UNOPS), would establish a Joint Co-ordination Center (JCC) in Salalah, Oman, to facilitate shipping corridors, oversee the loading and verification of fertiliser and related raw materials, and publish weekly reports.

The JCC would include representatives from UNCTAD and the International Maritime Organization (IMO). The mechanism, like the Black Sea Initiative, is time-bound and would not "derogate from any freedom of navigation rights … under customary or conventional international law." While vessel inspections are not compulsory, secondary inspections could be requested by member states.

The mechanism is ready to be deployed in a matter of weeks, but its implementation depends on the conflicting parties agreeing that it's a worthwhile initiative. The U.S.-Iran Memorandum of Understanding, intended as a confidence-building measure, has emerged as a sticking point due to its vague wording and legal ambiguity.