The Strait of Hormuz has officially reopened to navigation, but the return to pre-conflict normalcy is expected to be gradual and uneven.
While the waterway is technically open, vessel traffic remains heavily constrained, and the risk premium embedded in shipping and energy markets is unlikely to dissipate quickly.
He noted that the implications for Asia are significant, as the region remains heavily dependent on stable energy imports through the chokepoint.
The reopening follows a period of intense disruption that saw global trade flows severely impacted by the closure.
Bernard Aw, chief APAC economist at Coface, highlighted the fragility of the current situation in a commentary for Channel NewsAsia.
He noted that the implications for Asia are significant, as the region remains heavily dependent on stable energy imports through the chokepoint.
The slow pace of normalization suggests that supply chain costs will remain elevated for the foreseeable future, complicating recovery efforts for import-dependent economies.