Hormuz Traffic Collapses Amid Middle East Tensions
The Strait of Hormuz has seen its busiest day in recent weeks plummet to single digits as tensions escalate in the Middle East. According to preliminary vessel-tracking data compiled by Reuters, only four commodity vessels moved out of the Persian Gulf over Saturday and Sunday, down from a 10-day average of 14.
The sharp decline in traffic has raised concerns about oil supply disruptions. The Strait of Hormuz is one of the world's busiest shipping lanes, through which millions of barrels of crude oil pass every day. Saudi Arabia, the world's largest oil exporter, has been using the East-West pipeline to bypass the strait and export its oil from the Red Sea port of Yanbu.
However, on Thursday, a drone attack on the pipeline forced Saudi Arabia to shut it down over the weekend as a precautionary measure. This move has increased the vulnerability of Saudi oil exports to hostilities in the region, including attacks on tankers and the threat from Iran-aligned Houthis in the Red Sea.