Middle East Tanker Threat Reaches Crisis Levels as Shipping Industry Faces 'Terrible State'

The threat to oil tankers in the Middle East has reached its worst point since the start of the Iran war, according to analysts. The warning comes after a series of attacks on vessels in the Red Sea, an alternative waterway that some tankers had been using since Iran blocked the Strait of Hormuz.

The number of ships passing through the Strait of Hormuz has plummeted from over 100 per day before the war began to just eight on Sunday and 11 on Saturday, according to Kpler. Many ships have been 'going dark' when crossing the strait, meaning they turn off their transponder to avoid detection.

Iran has denied US claims that it was in talks with the country over reopening the strait, but said it was speaking to Oman about securing the shipping lane. The Iranian-backed Houthi militia has announced a blockade on Saudi Arabia's Red Sea ports and several attacks on ships have been reported in the past week.

Tim Wilkins, managing director of Intertanko, said the industry is facing a 'broadening, deteriorating, and increasingly complex security situation'. The threat to oil flows is not only coming from the Strait of Hormuz but also from the Red Sea, where attacks by Yemen's Houthi fighters have increased risks.

Peter Sand, chief analyst at Xeneta, said the fighting had taken the shipping industry 'back to square one' and that things were in a 'terrible state'. He warned that restoring normal cargo flows would take much longer than initially thought, with some estimates suggesting it could take three to four months.