Tensions Spark Shipping Slowdown as US-Iran Diplomacy Takes Center Stage

Shipping activity in the Bab el-Mandeb Strait and the Strait of Hormuz has come under pressure due to ongoing tensions between Iran and other nations. According to Kpler, only 18 commodity vessels passed through the Bab el-Mandeb Strait on Sunday, down from 27 on Saturday and 28 on Friday.

The Suezmax tanker Lesvos and the Very Large Crude Carrier (VLCC) Desh Vaibhav have transited the Red Sea with their Automatic Identification System (AIS) transponders switched off. The Malta-flagged Lesvos was carrying around 1 million barrels of Saudi crude, while the Indian-bound VLCC Desh Vaibhav is loaded with about 2 million barrels of Saudi oil.

Shipping activity in the Strait of Hormuz also weakened, with only one tanker carrying Iranian liquefied petroleum gas (LPG) crossing the strait on Sunday. Kpler data showed commodity vessel traffic through Hormuz dropped to 10 ships on Saturday from 19 on Friday, the highest daily count since mid-July.

The UK Maritime Trade Operations (UKMTO) agency has reported three additional attacks on tankers since Saturday. US President Donald Trump said fresh negotiations with Iran will begin on Monday after he decided against launching new military strikes, opting instead to pursue a diplomatic agreement aimed at ending the nearly six-month conflict.