ICS Secretary General Thomas A. Kazakos. Image Credit: ICS

The International Chamber of Shipping (ICS) has welcomed Iran's announcement that the Strait of Hormuz is open to commercial shipping, but cautioned that significant uncertainty remains over what the move means in practice.

Iran earlier today declared the strait "completely open" for commercial vessels, tying the reopening to the duration of a ceasefire between Israel and Hezbollah in Lebanon.

The announcement follows more than seven weeks of severe disruption to one of the world's most critical maritime corridors.

ICS Secretary General Thomas A. Kazakos said the development offered "a cautious measure of reassurance to the global maritime community and, most importantly, to the seafarers who have been placed in harm's way and confined on board their vessels for more than seven weeks."

"While this announcement is a positive step there is still much uncertainty around what it means in practice," Kazakos said.

"Regardless, it is essential that it marks the beginning of a broader and more durable return, beyond the current ceasefire, to freedom of navigation in one of the world's most critical maritime corridors."

The caution appears well-founded, with the US indicating that its naval blockade will remain in full force until a broader peace deal is reached, adding a further layer of uncertainty for shipowners and operators seeking to resume normal operations.

Kazakos called for coordinated action to ensure a safe and orderly return to operations.

"An orderly and sustained return to normal transit through the Strait will be essential," he said.

"This will require close coordination between the International Maritime Organization, regional states, naval authorities, and the shipping industry to ensure that vessels can transit safely. Above all, it is imperative that full freedom of navigation is respected by all parties in accordance with international law."

Oil markets responded positively to the news, with Brent prices immediately dropping some 10%. -  but