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IMO Pauses Hormuz Evacuation Plan After Attack, Exposing New Risks For Global Shipping

The International Maritime Organization (IMO) has temporarily suspended its evacuation plan for vessels trapped in the Persian Gulf after an attack on a merchant ship in the Gulf of Oman, underscoring how quickly security conditions in one of the world’s most sensitive waterways can destabilize global shipping.

The UN shipping agency said the decision followed an attack on a vessel that had passed through the Strait of Hormuz. Although the ship was not operating under the IMO evacuation framework, the incident was enough to halt a mission that had only just begun moving stranded ships and crews out of the region.

Safety Concerns Override Momentum

IMO Secretary-General Arsenio Dominguez said several vessels had already been successfully evacuated, but the organization needed to confirm that the required safety guarantees were still in place before proceeding.

“I have always reiterated that the safety of the seafarers remains paramount,” Dominguez said, adding that the evacuation plan would remain paused “until further clarity is obtained.”

The decision comes at a delicate moment for international shipping. The IMO launched the evacuation plan earlier this week, working with member states and industry after months of disruption around the Strait of Hormuz, one of the world’s most important energy and trade corridors.

The framework was designed to allow vessels to leave the Persian Gulf in a controlled, sequenced manner rather than create congestion in a narrow and heavily militarized passage. According to the IMO, roughly 11,000 seafarers were expected to be evacuated under the plan.

Reuters reported that by Wednesday morning, around 57 ships carrying about 1,100 seafarers had already used the routes before the pause was announced.

Attack In Gulf Of Oman Changes The Calculation

The latest incident followed reports from the UK Maritime Trade Operations agency that a vessel had been struck by an unknown projectile off the coast of Oman, damaging the bridge.

No casualties or pollution were reported. AP later cited a U.S. official as saying the ship had been hit by an Iranian drone, although the IMO neither identified the vessel nor attributed responsibility for the attack.

Iran has challenged routes developed without its full approval, maintaining that safe passage through the Strait of Hormuz should take place only through sea lanes recognised by Tehran. Authorities have also instructed vessels to remain in contact with naval forces through international maritime communication channels.

Why Cyprus Has A Direct Stake

Developments in the region are particularly relevant for Cyprus, one of Europe’s largest shipmanagement centres. According to the Shipping Deputy Ministry, 19 Cyprus-flagged vessels were operating in the Arabian Gulf earlier this week, with all ships and crews reported safe. Most operate permanently in the region, primarily providing specialised or auxiliary maritime services.

The Shipping Deputy Ministry has promoted Cyprus as the largest third-party shipmanagement centre in Europe and one of the three largest globally, with companies based on the island managing more than one-fifth of the world’s third-party fleet.

Greece Faces Even Greater Exposure

Greece also has significant exposure to developments in the region. The Union of Greek Shipowners says the country controls nearly 5,800 vessels, representing more than 19% of global tonnage and 61% of the European Union-controlled merchant fleet.

Earlier in the crisis, Greece’s shipping ministry advised Greek-flagged vessels to avoid the Persian Gulf, the Gulf of Oman and the Strait of Hormuz because of heightened navigation risks. Reuters also reported in March that at least 10 Greek-flagged ships were operating inside the Gulf, with five more just outside it, while more than 325 Greek-owned or Greek-managed vessels were present across the wider region.

Greek Shipping Minister Vassilis Kikilias described the situation as “alarming and worrying”, calling for commercial shipping to remain outside armed conflicts.

A Cautionary Pause, Not A Failure

Dominguez said the decision to pause the evacuation reflects the need to ensure the safety of seafarers before the operation resumes.

Coinciding with the Day of the Seafarer, held this year under the theme “Carrying world trade. Carrying the risks.”, the announcement also highlighted the importance of protecting thousands of seafarers in the Persian Gulf. Dominguez said they must not become victims of the ongoing geopolitical tensions.

Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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