Hormuz Traffic Crashes to Lowest Level Since Iran War Began

Commodity vessel traffic through the Strait of Hormuz has been severely impacted, with only three vessels transiting the waterway in the past day, according to preliminary tanker-tracking data by Kpler. This is a significant decrease from Monday's four vessels and well below the 10-day moving average of roughly 15 vessel transits.

The observed traffic on Tuesday was also lower than the daily average for the past 10 days, with an average of about 26 vessels transiting between the Red Sea and the Gulf of Aden. The Strait of Hormuz has become increasingly perilous due to re-escalation of hostilities this month, including strikes on tankers and the threat from Iran-aligned Houthis in the Red Sea.

Meanwhile, oil market participants are awaiting developments on the diplomacy front, as U.S. and Iran representatives engage in discussions at the UN General Assembly in New York.