Strait of Hormuz shipping grinds to halt as US, Iran resume fighting
Shipping traffic through the Strait of Hormuz has sharply declined following renewed US-Iran military confrontations, with vessel transits dropping from 130 daily to just five on Wednesday. Despite the disruption to this critical energy chokepoint, Brent crude oil prices remained relatively stable around $76.37 per barrel, though analysts expect upward pressure as summer inventory levels decline.
Maritime traffic through the Strait of Hormuz has experienced a dramatic contraction amid escalating military tensions between the United States and Iran. According to Lloyd's List Intelligence, no large vessels above 10,000 deadweight tonnage have transited the southern shipping corridor with their automatic identification systems activated since July 7, with the route described as "effectively grinding to a halt." On Wednesday and early Thursday, only five vessels were tracked crossing the waterway, a sharp decline from the 45 transits recorded on Monday and the approximately 130 daily crossings that occurred before late February.
The shipping disruption follows a series of military strikes. Iranian officials reported multiple explosions in the country's southern regions on Thursday, occurring after US strikes on Iranian targets on Wednesday and Tuesday. Tehran claimed its forces had retaliated by striking US military assets and other sites across Bahrain, Kuwait, Qatar, Jordan, and Iraq. However, a US official denied American involvement in the latest attacks, which remain unclaimed by any specific country or group.
Despite the regional turmoil affecting one of the world's most critical energy chokepoints, crude oil prices demonstrated relative stability. Brent crude, the international benchmark, traded at $76.37 per barrel as of early Friday, essentially unchanged from Thursday's close and down approximately 2 percent from Wednesday. The price had recovered to pre-war levels following a recent US-Iran memorandum of understanding, and currently trades more than $4 higher than the previous week.
Market analysts attribute the price stability to confidence that the situation will stabilize, though they anticipate mounting upward pressure. According to Bart Melek, global head of commodity strategy at TD Securities, declining oil inventories over the summer months will likely drive Brent prices $10 to $15 higher. June Goh, senior oil market analyst at Sparta Commodities, noted that refined petroleum products face greater price pressures than crude oil itself.
Bell tracks these organizations in depth — profiles, people, signals, and history. See them inside Bell →
Live signals across the sector that powers the Gulf.