Shipping through the Strait of Hormuz has picked up in recent days since the signing of a memorandum of understanding between the US and Iran on June 17. However, Washington and Tehran are giving shipowners conflicting instructions on how to navigate this vital waterway, sources have told the Financial Times (FT).

According to the FT, shipowners are confused by conflicting instructions from Iran, the US, and Western insurers and are unsure of the safest route out of the Persian Gulf.

According to SV Anchan, chairman of the American transport and logistics company Safesea Group, shipowners and operators are faced with a dilemma. If they follow the instructions of insurers and US authorities and sail closer to the Omani coast, they risk being exposed to Iranian action. On the other hand, if they follow Iran’s instructions and pass through the Iranian coastal zone, they could run into problems with US sanctions regulations or violate some of the instructions of insurance companies.

As one cargo insurance broker told the FT on condition of anonymity, the Iranians are demanding that ships pass through the Iranian route and pay duties, while the US is instructing ships to sail through the Omani route and escorting them by air. In his words, this process is poorly coordinated and could have a bad ending.

In the current situation, shipowners, operators, and insurers are trying to find a balance between safety and operational requirements, which is causing concerns among some ship crews, says Costas Delaportas, CEO at DryDel Shipping, a dry cargo transportation company.