Hormuz Shipping Slumps as U.S.-Iran Strikes Rattle Oil Markets

Oil market turbulence has been triggered by recent U.S.-Iran clashes, with the Strait of Hormuz seeing a sharp decline in tanker traffic, according to recent data. The number of vessels passing through the strategic waterway fell below the ten-day average, falling to just four on Tuesday, as reported by Kpler. This is significantly lower than the ten-day average of 13 tankers, according to Reuters.

Despite this, earlier this week, U.S. Energy Secretary Chris Wright claimed that 17 million barrels of crude had passed through the Strait of Hormuz on Monday alone, suggesting that oil flows in the Persian Gulf are now above pre-war levels. However, this figure is disputed by ING commodity analysts who pointed out that ship trackers have been estimating much lower flows, and emphasized the importance of considering average flows over longer periods rather than focusing on a single day's data.

The latest tanker traffic figures follow reports of Iran targeting two tankers in the Strait of Hormuz in retaliation for U.S. attacks over the weekend, which led to a surge in oil prices. Brent crude prices hit a record high of $96 per barrel, while West Texas Intermediate traded at over $90 per barrel. U.S. President Donald Trump expressed satisfaction with the situation, stating that Iran has "almost total control" of the Strait of Hormuz and that the country's economy is crumbling.

In response, Iran's military vowed to respond harshly to any further American aggression, warning that continued American meddling in the region would face "heavier, more widespread, and devastating" repercussions.