In the world of shipping there are pinch points or the straits of water are relatively narrow and the world of shipping has operated that the water in the middle is international waters. The waters benefit everyone and is owned by no one, although if a country wishes to have services along the coast that is up to them. If you look to naval battles in the past, some of them result in who controls the straits? When the world is relatively peaceful, the shipping industry says no one.

In an article by Ephrat Livni of the New York Times News Service, Iran is trying to take over the control of the Strait of Hormuz and potentially generate new revenues.

The head of Iran’s primary insurance regulator, Mousa Rezaei said a new insurance company has been established that was dedicated solely to the Strait of Hormuz. The Persian Gulf Strait Authority was created by Iran and demanded that vessels register and sign up for a new mandatory Iranian insurance policy – free for the next 60 days.

Richard Meade, editor-in-chief of Lloyd’s List, a shipping news service said we are in unchartered territory.

The International Maritime Organization – has told the New York Times the insurance requirement has not been officially submitted to IMO is not part of any official record or process.

It was added the right of ships to transit through the passage cannot be suspended or hampered by coastal states and there was no established basis in international law.

Linking to dividend paying stocks, all profitable companies depend on the law to operate and continue. Ideally for multiple generations, and although the law can and does change a bit, the consistency for the long term is the rule of law. You will often see companies that have takeover offers cite the process and the law when the bid is lower than the Board expects.

There are more questions than answers, till the next time – to raising questions.