Oil tanker traffic through Hormuz at near standstill as attacks strain Iran truce
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Vessels are increasingly switching off their public Automatic Identification System tracking transponders, making it harder to see all the ships crossing the strait, according to shipping industry sources.
PHOTO: REUTERS
- Oil tanker traffic through the Strait of Hormuz has nearly stopped due to increased risks after US airstrikes and Iranian retaliation, with many ships turning off tracking transponders.
- Iranian attacks on US military sites and ongoing vessel strikes have strained a fragile three-week truce, threatening the gradual reopening of this key oil route.
- The attack on a Qatari LNG tanker highlights high risks for valuable vessels, prompting insurers to reconsider coverage and shipping companies to pause voyages through the strait.
AI generated
LONDON – Oil tanker traffic through the Strait of Hormuz was at a near standstill on July 9, according to data and sources, as shipping risks escalated after the US renewed air strikes on Iran, triggering retaliation by Tehran in the Gulf.
Just two tankers had so far sailed through the strait in the early hours of July 9. They included the crude supertanker Berg 1, which had loaded at Iran’s Kharg Island and is subject to US sanctions, according to analysis from Kpler.
The Marshall Islands-flagged chemical tanker Well Sail, also transited the strait, Kpler analysis showed. Its previous loading destination was near Sharjah in the United Arab Emirates, according to LSEG ship tracking data.
Shipping industry sources said vessels were increasingly switching off their public Automatic Identification System (AIS) tracking transponders, making it harder to see all the ships crossing the strait.
“Tanker traffic through the Strait of Hormuz has essentially stopped, which tells you more about risk perception right now than any statement from Washington or Tehran,” Jorge Leon, head of geopolitical analysis at Rystad Energy, wrote in a report.
Latest flare-up leaves US-Iran truce teetering
Iranian armed forces launched attacks on US military infrastructure in neighbouring Gulf states on July 9 in response to US strikes on Iran’s southern coastal and eastern provinces, putting further strain on a three-week-old truce.
The latest flare-up in the four-month conflict began earlier this week with attacks on three tankers in the strait that the US blamed on Tehran.
Iran’s Revolutionary Guards Navy said on July 9 that US attacks on Iran and intervention in redirecting shipping were disrupting the strait’s gradual reopening, warning that any further US intervention would draw a “crushing response”.
The Strait of Hormuz handled about a fifth of global oil supplies before the war erupted on Feb 28 with US and Israeli strikes against Iran.
Daily traffic in the past two weeks had risen to its highest levels since the war’s outbreak, averaging 40 ships transiting the strait, which was still far off the pre-conflict average of 125 to 140 daily sailings.
LNG tanker attack exposes risk to high-value vessels
Some war underwriters have advised shipping companies to pause voyages through the strait while others are reviewing their policy terms after the renewed vessel attacks, insurance industry sources told Reuters.
“The Hormuz reopening story looks more fragile after the latest escalation,” ship broker Clarksons said in a report.
One of the three vessels hit this week, the Marshall Islands-flagged Qatari LNG tanker Al Rekayyat, remains stranded and is awaiting salvage operations off Oman after a projectile strike late on July 7 sparked a fire in its engine room.
Despite earlier fears of an explosion, industry sources said that risk was low for now and its cargo of liquefied natural gas appeared secure.
The ship registry of the Marshall Islands, one of the world’s top flag states, told Reuters there were no reported injuries or environmental impacts as a result of the incident involving the Al Rekayyat.
“As recent incidents have shown, the (marine war) market is now facing the prospect of potentially severe losses involving vessels of substantial value,” said one marine war underwriter, who asked not to be named due to the sensitivity of the situation. REUTERS