Hormuz Shipping Slumps Amid Escalating US-Iran Tensions

The Strait of Hormuz shipping traffic has slowed down significantly in recent days. According to ship-trackers Kpler, only four tankers traversed the strait on Tuesday, which is below the ten-day average of 13 tankers. This comes as U.S.-Iran tensions escalate, with Iran striking two tankers in response to U.S. attacks over the weekend.

U.S. Energy Secretary Chris Wright reported that a total of 17 million barrels of crude had passed through the Strait of Hormuz on Monday alone. However, ING commodity analysts noted that 'when you factor in bypass volumes, it suggests Persian Gulf oil flows are above pre-war levels.' They added that 'it makes more sense to look at average flows over longer periods, rather than a single day, given flows move lots day to day.'

The tanker traffic numbers come on the heels of reports about Iran's response to U.S. attacks. President Trump said, 'I like our position now much better, with almost total control of the Hormuz Strait, and their economy totally collapsing.' Iran's joint military command issued a statement warning that any country cooperating with the U.S. army will face 'heavier, more widespread, and devastating responses.'

Oil prices have risen in response to the escalating tensions, with Brent crude topping $96 per barrel and West Texas Intermediate trading at over $90 per barrel.