Middle East Oil Tankers Go Dark as Shipping Risks Escalate

Oil tankers have started using 'dark mode' for longer periods in the Middle East's key chokepoints, making it harder to track oil flows and transparency in market estimates. The Strait of Hormuz and Bab el-Mandeb Strait are seeing an increase in vessels switching off their transponders and AIS positioning systems for several days at a time.

This trend has been observed by ship-tracking data monitored by Bloomberg, with some tankers staying 'dark' for up to 10 days. The extended use of dark mode is believed to be a response to increased shipping risks in the region, particularly in areas controlled by the Iran-aligned Houthis, who have been targeting Saudi-linked ships and cargoes.

The practice of turning off transponders has made it challenging for analysts and market participants to accurately estimate oil exports from the Middle East. This lack of transparency can lead to price volatility and uncertainty in the global oil market.