As efforts to reopen the Strait of Hormuz drag on, pressure is mounting for a solution to be found.
John Denton, secretary general of the International Chamber of Commerce (ICC), believes the breakthrough may lie in a proven model. After helping broker the Black Sea Grain Initiative in the wake of Russia’s invasion of Ukraine in 2022, the ICC, which represents more than 170 countries, has helped develop a similar neutral framework for the Gulf.
The proposed mechanism establishes a practical framework for the registration, monitoring, verification and reporting of vessel movements through the Strait, with an initial focus on fertilisers and related raw materials.
“This is not the first time we’ve been involved in coming up with a mechanism which can reopen a trade route in the midst of conflict,” Denton told Fortune.
“The logic behind that deal was an exchange of incentives; Ukraine gained the ability to move wheat and sunflower products, while Russia gained the ability to move fertiliser. Whereas, at the moment, what we’re seeing with the Iran conflict is that the only way of exchanging incentives is escalation, which is not going to get us to a peaceful reopening of Hormuz. And that’s where we think our neutral governance mechanism could prove decisive.”
