Strait of Hormuz Traffic Sank To Just Six Vessels Monday
Commercial vessel traffic through the Strait of Hormuz has dropped to a two-month low amid rising security concerns and geopolitical tensions. Analysts warn that traffic levels need to increase significantly to stabilize global energy markets.
Why it matters
Reduced shipping in this critical chokepoint threatens global energy supply chains and increases the risk of price volatility.
Vessel traffic at the Strait of Hormuz continues to decline as last week's hopes of negotiations of a U.S.-Iran dealbegan to fade, yet again. AsOilPrice notes, on Monday, only six commodity vessels transited the Strait of Hormuz in either direction, down from 11 ships in the latest 10-day average, according to shipping data from Kpler cited byReuterson Tuesday. Four commodity vessels moved inbound into the Persian Gulf via the Strait and two others exited outbound, the data showed. Bloomberg data reveal a similar picture, only instead of 2 ships exiting, Bloomberg has only 1, bringing the total Monday commercial crossings to 5. The inbound movement of commodity ships included two empty product tankers, while a small LNG carrier and a tanker shipping residual fuel exited the Persian Gulf with energy products en route to buyers.
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