LONDON – Commercial and oil tanker traffic through the Strait of Hormuz has fallen significantly this week as global energy markets closely monitor talks between Iran and Oman over the safe passage of vessels through the strategic waterway.
Only 33 vessels passed through the Strait between Monday and Thursday, compared with 50 during the same period last week, indicating a decline of roughly one-third in maritime traffic.
Just four vessels crossed the waterway a day earlier, including the very large crude carrier Nissos K. The tanker was carrying around 2 million barrels of Basrah crude from Iraq’s Basrah Oil Terminal.
Of the other three vessels, two were carrying liquefied petroleum gas (LPG), while the fourth was a small cargo vessel.
So far this week, only six crude oil tankers have exited the Strait, while 21 vessels have entered it. Most of those vessels entered through the Iranian side.
Shipping sources said several Chinese and Indian refineries had been looking for vessels capable of entering the Strait of Hormuz to load crude from Iraq’s Basrah Oil Terminal.
Interest in Basrah crude has increased because of significant discounts currently available on the oil, although no vessel has yet been definitively assigned for such a shipment.
Shipping companies and vessel owners are exercising caution because of the prevailing security situation around the Strait. Concerns over potential attacks, sanctions and other risks have prompted operators to limit the movement of vessels through the strategically important waterway.
The decline in maritime traffic comes as Iran and Oman discuss possible arrangements to ensure the safe passage of commercial vessels through the Strait of Hormuz.
The global energy markets are closely watching the outcome of the talks because the Strait is a major route for international oil and gas shipments.
The analysts say an agreement between Iran and Oman that restores safe and regular maritime traffic could ease concerns over global energy supplies and reduce pressure on oil markets.
However, the prolonged uncertainty or delays in the talks could keep shipping activity subdued and sustain concerns over energy prices.
The number of vessels passing through the Strait in the coming days could therefore serve as an important practical indicator of whether the Iran-Oman discussions are making progress.
