Global Payments cuts annual forecasts as Middle East conflict hits travel spending

The threat to oil tankers in the Middle East is at its highest level since the beginning of the Iran war, according to experts. A series of attacks on vessels in the Red Sea, an alternative route for tankers, has raised concerns about the risks. Iran has denied claims that it is in talks with the US over reopening the Strait of Hormuz, but has been speaking to Oman about securing the shipping lane.

The number of ships passing through the Strait of Hormuz has dropped significantly, from over 100 per day before the war to just eight on Sunday and 11 on Saturday. Many ships are turning off their transponders to avoid detection. The Houthi militia, supported by Iran, has been attacking Saudi tankers using the Red Sea route, further increasing the risks.

Tim Wilkins, managing director of Intertanko, said the industry is facing a deteriorating security situation. Hapag-Lloyd, a global shipping company, has warned that it will closely monitor developments and adjust its network if necessary, estimating that a return to normal flows would take three to four months. Despite ongoing talks with Oman, Iran has stated that no deal is imminent to reopen the strait. Oil prices have fallen sharply following Donald Trump's decision to cancel planned strikes on Iran.