Alexandros Josephides warns of oil crisis in event of Hormuz Strait closure

09:34 - 16 June 2025

Economy

Cyprus' shipping community is closely monitoring developments following the Israeli attack on Iran and subsequent retaliation, the Director General of the Cyprus Shipping Chamber, Alexandros Josephides, has said, noting that the possible closure of the Straits of Hormuz would create an oil crisis.

As he said, the Strait of Hormuz, which is the only sea passage for the Persian Gulf, is considered of strategic importance, as about 20% of natural gas and oil is handled through it, while it is also used by a number of Cypriot-flagged ships.

“We are all alert and waiting to see how things will develop,” Josephides said, adding: “Geopolitical developments are always on our agenda, but this flare-up in the region makes things more critical for us.”

“If the region is shut down, the global supply of gas and oil will be affected and that would mean a small oil crisis leading to a price increase, while shipowners will be forced to seek alternative routes if such a scenario lasts long enough”, he said.

Either way, said Josephides, where and when possible, it is expected that some ships will avoid the area in the face of the risk of being trapped by an Iranian reaction against shipping.

Alexandros Josephides warns of oil crisis in event of Hormuz Strait closure

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