A French-owned container ship has successfully navigated the Strait of Hormuz, marking the first passage by a major Western European firm's vessel since a recent conflict began over a month ago. This vital transport route, crucial for about a fifth of the world's oil and liquid natural gas, had seen normal activity halted due to attacks on several ships. While Iran has stated 'non-hostile vessels' can use the waterway, shipping traffic has dramatically decreased by approximately 95%. The slowdown initially left around 200 vessels stranded and caused global oil prices to skyrocket, leading to fears of increased inflation worldwide. Despite the significant reduction, some shipping continues, with about 100 vessels, including some linked to Iran, Pakistan, and India, having passed through since late February. Ships making the journey have reportedly hugged the Omani coast unusually closely to ensure safety amidst ongoing tensions.
Key Vocabulary
Strait
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Vital
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Decline to comment
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Halt
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Stranded
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Skyrocketing
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Inflation
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Traffic
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Links to
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True or False?
The Strait of Hormuz is important because it is a key route for transporting a significant portion of the world's oil and natural gas.
All shipping through the Strait of Hormuz has completely stopped since the conflict began in late February.
The US President has successfully reopened the Strait of Hormuz for all international shipping.
The French-owned ship was carrying natural gas, similar to the Japanese ship mentioned in the article.
The conflict in the Strait of Hormuz primarily affected only the shipping industry, with no broader economic consequences.
Comprehension
What is the primary reason for the slowdown in shipping through the Strait of Hormuz?
Which of the following best describes the economic impact of the shipping slowdown mentioned in the article?
What can be inferred about the safety measures taken by ships passing through the Strait of Hormuz recently?
Why might CMA CGM have 'declined to comment' on their ship's passage?
Considering the information in the article, what broader implications might the ongoing tensions in the Strait of Hormuz have for international businesses that rely on global supply chains?
Synonym Match
Match each word with its synonym.
Collocations
Match each phrase with its meaning.
Vocabulary Practice
The company's decision to expand into new markets is a step for its future growth.
Due to the unexpected storm, several flights were cancelled, leaving hundreds of passengers at the airport.
The government is concerned about the of food prices, which is impacting household budgets.
When reporters asked about the recent data breach, the spokesperson chose to .
The new trade agreement will strengthen economic between the two nations.
The central bank announced measures to combat rising and stabilize the currency.
Ticket to Class
The article mentions that some ships are 'hugging unusually close' to the coast of Oman. What are the potential risks and benefits of such a strategy for a shipping company, and how might this influence their risk management decisions?
Discussion
- The article mentions that some ships are 'hugging unusually close' to the coast of Oman. What are the potential risks and benefits of such a strategy for a shipping company, and how might this influence their risk management decisions?
- The conflict caused 'skyrocketing global oil prices' and 'fears of higher inflation'. How might such sudden economic shifts impact your company or industry, and what contingency plans could be put in place to mitigate these effects?
- The article states CMA CGM 'declined to comment'. In what business situations is it appropriate or necessary for a company to decline to comment, and what are the potential consequences of doing so or not doing so?