Hormuz Shipping Slows to a Trickle as US-Iran Tensions Escalate
Shipping through the Strait of Hormuz dropped sharply over the weekend as tensions between the United States and Iran intensified. Iran fired warning shots at vessels in the strait while the US military intercepted an Iranian cargo ship.
Ship-tracking data showed only three vessels passing through the strait in 12 hours, compared with around 130 that do so daily. One ship was leaving the Gulf and two were entering it.
The three vessels included the Nero, which is subject to British sanctions, the chemical tanker Starway and the Axon I, which faces US sanctions for trading with Iran. The slowdown came despite Iran briefly declaring the strait open on Friday.
The tensions fed through immediately to oil prices, which rose by around 5%. War risk premiums climbed to about 3% of the value of vessels.