Iran and Israel Confront Each Other at IMO, Raising Alarms Over Gulf and Red Sea Shipping
At a session of the International Maritime Organization (IMO) in London on June 18, 2025, Iran and Israel delivered sharply opposed statements, each accusing the other of undermining maritime safety in the Gulf and Red Sea. Iran alleged that Israel had attacked its petrochemical and gas facilities in Asalouyeh, claiming this endangers global maritime security and energy supplies. In response, Israel accused Iran of backing Yemen’s Houthi rebels, who have launched strikes disrupting navigation through the Red Sea and Suez Canal.
Iran warned that, if the international community fails to intervene, it may respond with measures including the closure of the Strait of Hormuz—a chokepoint responsible for approximately 18–20 million barrels of oil per day. Maritime organisations and multiple governments have since issued advisories urging vessels to avoid Iranian waters near Hormuz. Greece and the UK have specifically cautioned merchant fleets to steer clear of the Gulf of Aden and log all Hormuz passages, highlighting heightened tensions and the risk of missile or mine strikes.
Israel countered by stating that Iran’s support enabled Houthi militancy to transform the Red Sea region into a "maritime terror zone." It holds Tehran accountable for a surge in attacks against commercial shipping, coinciding with broader security concerns across key routes. Such hostilities have already caused significant spikes in tanker insurance costs and disruptions to global oil transport, with Very Large Crude Carrier (VLCC) rates increasing by approximately 40 % in recent days.
Market dynamics also reflect growing geopolitical anxiety. Brent crude briefly climbed above $75 per barrel, and analysts estimate that a regional risk premium could reach as high as $10 per barrel. Goldman Sachs forecasts prices could return to the low $60s by late 2025 if calm returns, but warns disruptions to Iran’s output or broader escalation could push prices toward $90 or more.
The IMO finds itself under scrutiny as discussions appear increasingly politicised, drawing criticism that the body is shifting from its traditional role focused on maritime safety toward becoming a stage for diplomatic confrontation. As these accusations reverberate through the maritime community, shipping firms and nations face urgent decisions on rerouting, insurance, and precautionary protocols—all amid fears of wider instability.
In essence, the heated exchange at the IMO marks a significant escalation in the Iran–Israel maritime confrontation, with potential consequences for global trade, energy markets, and navigational safety. Governments, shipping companies, and international agencies now face a test of their ability to manage a crisis that threatens some of the world’s most critical maritime chokepoints.
