Vessel traffic through the Strait of Hormuz fell sharply this week after fighting between the U.S. and Iran resumed, according to BlockBeats, citing Kpler data. On Thursday, the number of vessels transiting the waterway dropped to 22 from 30 a day earlier. The latest escalation followed an Iranian strike targeting ships in the strait on Tuesday local time, including damage to a Qatari LNG carrier.
Since the two sides resumed attacks on each other on Tuesday, only two LNG vessels have entered the strait and one has exited. Transit volumes had previously recovered after the U.S. and Iran signed an agreement on June 17 to begin talks aimed at ending the conflict, with flows climbing for several days before reaching a peak. That rebound was later cut short after the ceasefire broke down.
Shipping broker Braemar LNG said in a client note on Friday that shipowners had adopted a cautious stance and pulled available tonnage out of the region “until the geopolitical situation becomes clearer.” The retreat has reduced the number of ships available for hire and pushed transport costs higher.
Vessel traffic through the Strait of Hormuz has fallen since fighting between the U.S. and Iran flared up again this week, BlockBeats reported on July 11.
Kpler data showed that 22 vessels passed through the strait on Thursday, down from 30 the previous day. The renewed clash followed an Iranian attack on ships in the waterway on Tuesday local time, including damage to a Qatari LNG carrier.
LNG traffic has slowed
Since the two sides resumed strikes against each other on Tuesday, only two LNG vessels have entered the strait and one has left.
Transit volumes had increased after the U.S. and Iran signed an agreement on June 17 to open talks on ending the conflict. The number of transits peaked a few days later before the ceasefire was broken.
Available tonnage shrinks, costs rise
In a client report on Friday, shipping broker Braemar LNG said shipowners had taken a cautious stance and withdrawn available capacity from the region “until the geopolitical situation becomes clearer.” That has reduced the number of available vessels and raised shipping costs.
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