Ship traffic through the Strait of Hormuz remains critically low, despite President Trump’s unilateral extension of the ceasefire with Iran. On Wednesday, only six vessels, including three oil tankers, transited the strait, reflecting ongoing tensions as Iran continues to exert control over shipping lanes while the U.S. maintains its blockade. The situation has escalated, with Iranian forces seizing two container ships and recent incidents of gunfire on commercial vessels, highlighting the dangerous security environment.
This stagnation in maritime traffic is significant for the oil markets, as the strait is a vital conduit for approximately 20% of the world’s crude supply. The current levels of activity are far below pre-war norms, which saw over 100 ships daily. Analysts at Rystad Energy predict it will take until July for oil flows to recover to 90% of those levels, with additional delays in processing at refineries.
Market participants should closely monitor developments in the Strait of Hormuz, as continued disruptions could exacerbate supply constraints and drive oil prices higher in the near term.
Source: cnbc.com