Strait of Hormuz traffic plunges as US, Iran resume fighting

Shipping traffic in the Strait of Hormuz has significantly decreased due to renewed fighting between the United States and Iran. Since Tuesday, no large vessels have been broadcasting their location via the US-coordinated route, and traceable crossings have "effectively ground to a halt." This decline in traffic, from approximately 130 daily transits before the conflict to just five on Wednesday, reflects a cautious posture by shipping lines amid an elevated threat environment. Iran has reported explosions following US strikes on its targets, while Iranian officials claim to have struck US military assets in retaliation for attacks on vessels in the Strait. Despite this turmoil, Brent crude oil prices have remained largely steady, though analysts anticipate upward pressure on prices as inventories dwindle.

Since a US-Iran memorandum of understanding (MoU) on June 17 aimed to restore shipping through the Strait of Hormuz, the waterway's future is uncertain. Despite over 500 ships passing, many remain stuck. In recent days, three ships were attacked, with Iran accusing them of attempting passage without approval. The US responded with escalating strikes on Iranian soil, including Tehran, while Iran fired missiles and drones at Gulf nations. US President Trump stated the truce is "over," raising fears of renewed war, and Iran has threatened to close the strait again. The Strait of Hormuz is a vital chokepoint for global oil and gas, with approximately 20 million barrels passing daily before the war. At least five commercial vessels have been attacked in or near the strait since the ceasefire.

Shipping traffic through the Strait of Hormuz has significantly decreased following recent attacks on vessels. On Wednesday, only 23 tankers and cargo ships transited the waterway, a sharp drop from 47 the previous week. These attacks occurred after a US-Iran deal aimed at reopening the strait, which had seen increased traffic following its signing. The incidents involved ships using a US-recommended route through Omani waters, prompting Iran to reiterate its claim that its own routes are the only safe option. The US responded with strikes on Iranian targets, accusing Iran of violating the truce, while Iran accused the US of breaching the agreement. This latest violence has caused a halt in traffic on the Omani route, with no ships using it on Wednesday.