Hormuz Tanker Traffic Plummets Amid Security Concerns

Tanker traffic through the Strait of Hormuz has dropped significantly in recent days, according to shipping data. On Thursday, just four commodity ships were recorded entering or leaving the strait, a steep decline from the ten-day average of up to sixteen vessels.

The decrease is largely due to heightened caution among shipowners and energy exporters following hostilities flaring up again this month. Tanker strikes, threats posed by the Iran-aligned Houthis in the Red Sea, and the temporary closure of Saudi Arabia's East-West onshore pipeline have all contributed to the decline.

The Saudis are taking advantage of alternative oil routes, offering millions of barrels of crude for collection from offshore Oman. This has led to a surge in traffic immediately outside Hormuz, with buyers opting for ship-to-ship transfers in the Gulf of Oman rather than sending tankers into the Persian Gulf through Hormuz.