Indian-American maritime executive Dr S.V. Anchan, chairman of the Safesea Group, has warned that recent hostilities in West Asia risk disrupting passage through the Strait of Hormuz and driving up global oil prices. Speaking to PTI, Anchan said shipping faces immediate strain in any geopolitical crisis and urged rapid measures to keep the vital waterway open for commerce.
“The Strait of Hormuz must not be allowed to be shut down,” he said, calling for coordinated action to guarantee safe transit for vessels. He cautioned that a sustained spike in oil prices would damage the global economy and that no country, including the United States, benefits from prolonged market disruption. With some airspaces already closed, he described a closure of Hormuz as akin to “choking the people at large of the region.” He estimated roughly 150 tankers are currently anchored outside the strait and not proceeding through it.
The narrow channel between Oman and Iran links the Persian Gulf to the Gulf of Oman and the Arabian Sea and is one of the world’s most important oil chokepoints. The US Energy Information Administration says there are “very few alternative options” if the strait is closed; in 2024, about 20 million barrels per day—around 20% of global petroleum liquids consumption—transited the strait on average.
Anchan emphasized how the maritime sector is usually the first to be affected in conflicts, especially in confined waters like the Arabian Gulf. He noted the current situation is unusual because of direct action by the US and Israel against Iran, followed by Iran’s retaliatory strikes, creating fresh uncertainty for shipping and trade.
Insurance and operational hurdles are already leading owners and charterers to avoid the region. US-owned vessels face questions over Additional War Risk (AWR) coverage, many shipowners are steering clear of Middle East waters, and charterers are reluctant until risk assessments become clearer. Anchan said normalising Iranian exports—similar to the approach some other states have taken—would strengthen the tanker market and support bulk shipping sectors.
Highlighting the sector’s centrality to world trade, he noted that about 94% of global trade moves by sea, yet the industry often lacks recognition and support when under pressure. Anchan criticized how sanctions are frequently applied without sufficient regard for the capital-intensive shipping sector, which is often targeted because of its ties to energy trade.
He outlined the complexity of modern shipping: production, refining, ownership, financing, insurance and ports can all sit in different jurisdictions, while vessels operate on multiple routes and face overlapping compliance demands. Sanctions-related breaches can produce legal disputes, liabilities, reputational harm, delays, fines and vessel detentions. Many insurance policies now include sanctions exclusions that protect insurers but shift burdens to shipowners.
To reduce unintended harm, Anchan urged governments and the UN to treat affected businesses as potential “collateral damage” and to engage them in policy design. He proposed establishing a recognised industry body—possibly under the UN Global Compact or a similar framework—to advise the UN, participate on sanctions panels, and help design fairer measures. He argued that compensating companies for sanction-related losses would make sanctions more effective and equitable, and that sanctions should avoid creating disproportionate impacts on third parties.
Anchan called on Arabian Gulf states to prioritise keeping ports open and offering safe transit, including naval escorts if necessary, to preserve the flow of energy and global trade until tensions ease.
