Naval vessel escorts bulk carrier through the Strait of Hormuz
Oil tanker traffic transiting the Strait of Hormuz has seen a significant increase, coinciding with ongoing negotiations between the U.S. and Iran aimed at de-escalating the conflict. This surge in maritime activity has contributed to a decline in oil prices as more supply enters the market.
Both the U.S. and Iran have reportedly agreed to reopen the crucial shipping route for oil during the negotiation period. This follows an earlier U.S. naval blockade and the laying of sea mines by Iran, which had previously deterred shipping through the narrow chokepoint.
Despite the increased traffic, the central channel of the Strait of Hormuz has not yet been cleared of Iranian mines. Consequently, vessels are navigating either a northern channel within Iran’s territorial waters or a southern channel within Oman’s waters. The U.S. Navy is monitoring transits along the southern route, while Iran has recently asserted that vessels should use the northern route.
According to Kpler, a global shipping traffic tracking firm, shipping traffic rose over the weekend to its highest level since the conflict commenced at the end of February. Between Saturday and Monday, 109 vessels transited the Strait of Hormuz.
President Donald Trump noted this development on his social media platform, stating, “19 Million Barrels of Oil flowed out of the Hormuz Strait yesterday, an all time RECORD. Oil prices are tumbling down, and the World is a much safer place!!!”
However, traffic levels remain below the daily average of over 130 ships that transited the strait before the conflict began, as reported by The New York Times. The International Maritime Organization indicates a backlog of hundreds of ships still awaiting passage through the strait.
The Joint Maritime Information Center (JMIC), a U.S.-led international maritime security organization based in Bahrain, reduced the regional threat level to moderate on June 18, following the agreement to open the waterway during the 60-day negotiation window. Nevertheless, JMIC confirmed the presence of mines and advised vessels to utilize the southern route near Oman, which has been cleared.
JMIC issued an advisory stating, “Mariners should be advised of the existence of mines and expect naval presence as clearance operations continue. Mariners should also expect congestion through transit routes and potential VHF hailing from naval forces to support free flow.”
The increased flow of oil through the Strait of Hormuz has eased global oil prices, which had previously surged above $100 a barrel during the initial months of the conflict. On Tuesday, Brent crude, the global oil benchmark, was trading around $75 a barrel, marking a decline of approximately 0.3% for the day and over 4.5% in the past five days. West Texas Intermediate, the U.S. crude benchmark, was around $73 a barrel, down roughly 0.8% on the day and about 7.7% over the last five trading days.
The resurgence of Middle Eastern oil supplies via the Strait of Hormuz has also impacted prices for North Sea crude, with Forties crude trading at its lowest level in two years on Monday, according to Bloomberg.
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