Oil Tanker Traffic Through Strait of Hormuz Nearly Grinds to Halt

Oil tanker traffic through the Strait of Hormuz has slowed to near standstill after renewed military escalation between the United States and Iran heightened security risks in one of the world's most critical energy shipping corridors.

Shipping data and industry sources showed that only two tankers transited the strait during the early hours of Thursday, underscoring growing caution among vessel operators.

According to vessel-tracking analysis by Kpler, the only confirmed transits involved the Very Large Crude Carrier (VLCC) Berge 1, which loaded crude oil from Iran's Kharg Island and is subject to U.S. sanctions, and the chemical tanker Well Sail, sailing under the Marshall Islands flag after departing waters near Sharjah in the United Arab Emirates.

Maritime industry sources said an increasing number of vessels are switching off their Automatic Identification System (AIS) transponders, making it more difficult to monitor ship movements and assess overall traffic through the waterway.

"The halt in oil tanker movements through the Strait of Hormuz is a clearer indicator of how the market perceives current risks than any statement from Washington or Tehran," Jorge Leon, Head of Geopolitical Analysis at Rystad Energy, said in a report.

The renewed disruption follows Iranian strikes targeting U.S. military infrastructure in Gulf states in response to recent American air raids on southern and eastern Iran, raising concerns that the conflict could undermine the fragile ceasefire that had entered its third week.

The latest escalation began earlier this week after attacks on three oil tankers in the Strait of Hormuz, incidents for which Washington blamed Tehran.

The deteriorating security environment has also prompted a reassessment by marine insurers. Industry sources said some war-risk insurers have advised shipping companies to temporarily suspend voyages through the strait, while others are reviewing coverage terms and premiums following the renewed attacks.

Shipping broker Clarksons warned that prospects for maintaining safe navigation through the Strait of Hormuz have become increasingly fragile after the latest escalation.

Meanwhile, the Qatari liquefied natural gas carrier Al Rekayyat remains anchored off the coast of Oman after sustaining damage in an attack that triggered a fire in its engine room earlier this week. Sources said the vessel's cargo remains secure and the immediate risk has eased.

A senior executive at a marine war-risk insurance company, speaking on condition of anonymity, said the recent incidents highlight the potential for substantial losses involving high-value commercial vessels operating in the region.