- Vessel traffic through the Strait of Hormuz has slumped significantly as renewed U.S. strikes on Iran and President Trump's blockade take effect.
- On July 16, daily vessel crossings dropped to single digits, with only four vessels crossing the strait on that day.
- Vessel transits through the Strait of Hormuz decreased by 66% in the week ending July 20, with only 53 recorded transits.
- Shipping tensions escalated further as Yemen's Iran-aligned Houthis imposed a ban on Saudi Arabia, threatening global energy supplies.
- Multiple vessels have been hit by projectiles in the Gulf and off Oman, raising safety concerns among shipping companies.
- Vessel movements are likely to continue in ebbs and flows as shipowners reassess safety amid ongoing tensions.
- Oil prices could retest $100 a barrel if the current intensity of fighting persists, according to energy analysts.
Vessel crossings through the Strait of Hormuz have sharply declined due to escalating tensions between the U.S. and Iran, with only four vessels reported on Monday, a significant drop from seven the previous day.
According to shipping data, crossings have fallen 66% from the previous week, with Lloyd's List Intelligence recording just 53 vessel transits in the week through July 20.5
Tanker and gas carrier movements, crucial for transporting Gulf crude oil and liquefied natural gas, dropped to 30 crossings from 90. Daily crossings, which had averaged over 20 vessels before July 15, fell to single digits shortly thereafter.
Bridget Diakun, a senior risk and compliance analyst at Lloyd's List Intelligence, noted, “Things have slowed down significantly since tensions reignited.” Despite the decline, she added, “We’re still seeing tankers crossing in and out, it hasn’t ground to a complete halt.”
The situation is further complicated by Yemen's Iran-aligned Houthis imposing a blockade on Saudi Arabia, threatening global energy supplies.
Saul Kavonic, head of energy research at MST Marquee, remarked, “The hostilities and reimposed blockade set the conflict back on an escalatory trajectory,” with flows through Hormuz dropping to around 15% of pre-war levels.
If fighting persists, oil prices could retest $100 a barrel, raising alarms in the global market.10
“Flows through the strait have dropped to roughly 15% of pre-war levels, with just 53 vessel transits in a week — down 66% from the prior week. Oil could retest $100 a barrel if the current intensity of fighting persists for several weeks, according to an energy analyst.”
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