UN-Backed Plan Aims to Reopen Strait of Hormuz

A United Nations-backed neutral governance mechanism, drawing on lessons from the Black Sea Grain Initiative, has been developed to facilitate the reopening of the Strait of Hormuz amid ongoing geopolitical tensions. John Denton, secretary general of the International Chamber of Commerce (ICC), which represents over 170 countries, revealed the plan to Fortune, highlighting its potential to establish a practical framework for vessel movements through the critical waterway. The proposed mechanism focuses initially on the registration, monitoring, verification, and reporting of shipments of fertilizers and related raw materials.

Denton emphasized that this initiative is not the first time the ICC has been involved in reopening trade routes during conflict. He referenced the Black Sea Grain Initiative, brokered in the wake of Russia's 2022 invasion of Ukraine, where a reciprocal exchange of incentives allowed Ukraine to export grain and Russia to export fertilizer. Denton contrasted this with the current situation concerning Iran, where he stated that escalation appears to be the primary form of incentive exchange, hindering a peaceful reopening of Hormuz. He believes the proposed neutral governance mechanism could be decisive in resolving this impasse.

The proposed mechanism would be spearheaded by a dedicated task force, led by Jorge Moreira da Silva, the Executive Director of the United Nations Office for Project Services (UNOPS). This task force would include representatives from the UN Conference on Trade and Development (UNCTAD) and the International Maritime Organization (IMO), bringing together key international bodies involved in trade and maritime affairs. The initiative aims to create a structured approach to managing shipping through the Strait, ensuring transparency and security for participating vessels and cargo.

Once operational, a Joint Coordination Center (JCC) would be established to manage secure shipping corridors. The JCC's responsibilities would include overseeing the loading of fertilizer and related raw materials, verifying and monitoring all participating vessels, and publishing weekly reports detailing its activities. The JCC is slated to be located in Salalah, a coastal city in southern Oman on the Arabian Sea. Daily meetings of JCC members would be held to review incoming, verified information, ensuring continuous oversight and rapid response to any issues that may arise. This comprehensive approach aims to restore confidence and facilitate the unimpeded flow of essential commodities through the Strait of Hormuz, a vital chokepoint for global energy and trade.