Hormuz Traffic Plummets as Deadline Expires

The Strait of Hormuz, a critical waterway for global energy supplies, has seen a drastic decline in vessel traffic after the expiration of a 60-day deadline set by an interim US-Iran agreement. According to Kpler data, the number of vessels transiting the strait fell 64% from its post-MoU peak and dropped into single digits, with only three vessels crossing on Sunday.

An estimated 520 commercial vessels are now stuck in the Arabian Gulf, with a backlog expected to take up to eight weeks to clear. Ana Subasic, trade risk analyst at Kpler, stated that 'if and when unrestricted traffic resumes, we estimate it would take at least six to eight weeks to clear the backlog and increase flows.'

The decline in vessel traffic comes as Iran's oil exports through the strait have plummeted by 94%, falling to 91,900 barrels per day. Other Gulf producers, however, have fared better, with their combined crude exports through Hormuz standing at 2.948 million barrels per day.

A new arrangement between Iran and Oman to establish shipping routes through the strait is under discussion, but its success remains uncertain due to Tehran's insistence on control over passage and transit fees.