UKMTO implies sharp drops in crude this week may be premature as the sustainability of the Iran/Israel ceasefire remains uncertain. FIle Image / Pixabay

Despite widespread relief following a ceasefire between Iran and Israel, the shipping industry should not consider the risks of operating in the Middle East to have faded, according to the British UKMTO agency.

Oil prices have slumped early this week following the announcement by US President Donald Trump of a ceasefire between the two countries after 12 days of open conflict. 

But the UK Maritime Trade Operations agency (UKMTO) has implied that reaction may have been premature.

“Due to the uncertainty of maritime security the maritime domain threat remains elevated,” the agency said in a notice to shipping in the region late on Tuesday.

“While the media reports cautious optimism, they do not constitute a reliable basis for reducing security measures.

“Underlying geopolitical tensions remain unresolved, and threats from Iranian-aligned groups like the Houthis persist.

“Sustainability of the ceasefire agreement remains unclear.”