Hormuz Shipping Nearly Grinds to a Halt

Only two tankers passed through the Strait of Hormuz on Thursday, as risks to shipping rose sharply following the resumption of US airstrikes on Iran and Tehran's subsequent retaliation, according to data from analytical firms and industry sources.

Traffic through the strategic strait has virtually come to a standstill, according to Rystad Energy, whose analyst Jorge León said this better reflects the current level of risk than statements from Washington or Tehran. Sources in the shipping industry also noted that several vessels are turning off their public Automatic Identification System (AIS) transponders, making it more difficult to track their movements.

Tensions escalated after Iranian armed forces attacked US military infrastructure in the Gulf states in response to US strikes on Iranian territory. The conflict escalated again following attacks on three tankers, for which Washington blamed Tehran.

Meanwhile, war risk insurers are advising shipping companies to suspend voyages through the strait or are reassessing their insurance terms. One of the ships targeted this week, the Qatari tanker Al Rekayyat, remains stranded off the coast of Oman, awaiting rescue operations.

(Reuters, bak)