Strait of Hormuz traffic surges to highest level since war began

At least 35 cargo ships crossed the Strait of Hormuz on Tuesday, marking the busiest day in the waterway since the Middle East war began in late February. The figure was reported by the data platform Kpler and comes a week after an announcement of a memorandum of understanding between Iran and the United States. The rebound is notable because the strait is a strategic passage for global trade in hydrocarbons and other goods.

Sponsored

The reported traffic level was still well below peacetime volumes, when about 120 ships passed through the strait each day. During the war, from 1 March to 14 June, fewer than 10 cargo ships crossed on average per day, according to the same data. Since 15 June, one day after the agreement was announced, the daily average has risen to 21 and reached 27 over the last five days.

The report says the strait was reopened last week after an agreement between Iran and the United States aimed at ending the conflict in the Middle East. Iran had announced on Saturday that it would close the strait in response to Israeli attacks in Lebanon. Later, the United States and Iran reached an understanding on mechanisms to stop the fighting in Lebanon and ensure the security of the Strait of Hormuz.

The latest traffic figures suggest shipping has resumed more strongly, but not yet at pre-war levels. The Strait of Hormuz matters because it is one of the world's most important energy chokepoints. Any disruption there can affect the movement of oil, gas and other cargo, with potential consequences for shipping costs and market confidence.

Sponsored

The renewed flow of vessels may ease some immediate concerns, but the political arrangement behind it remains fragile. The latest comments from Iran also point to unresolved questions about how the waterway will be managed. Mohammad Bagher Ghalibaf, Iran's chief negotiator, said on Tuesday that the administration of the Strait of Hormuz would never be the same as before the war.

He added that Iran would administer the maritime route, raising questions about whether ships may have to pay a fee to pass through. What remains unclear is how durable the current understanding will be and whether the recent rise in traffic can be sustained. It is also not clear how any future management arrangements would work in practice or whether they would be accepted by shipping operators.

The next developments to watch are any further statements from Iran and the United States, and whether traffic continues to recover in the coming days.

#StraitofHormuz #Iran #UnitedStates #shipping #energy

Sponsored