Hormuz shipping traffic declined this week as markets monitored talks between Iran and Oman for signs of progress towards reopening the strategically important maritime route.
According to shipping data, 33 vessels passed through the Strait of Hormuz from Monday to Thursday, compared with 50 during the same period last week.
The decline comes as shipping companies remain cautious while waiting for clarity over the future operation of one of the world’s most important energy routes.
Limited tanker movements recorded
Four vessels crossed the strait on Thursday, including the very large crude carrier Nissos Kea, which was carrying around two million barrels of crude oil from Basra, Iraq, according to Kpler data.
Of the remaining vessels, two were carrying liquefied petroleum gas, and one was a small bulk carrier.
Only six crude oil tankers exited the strait during the week, while 21 vessels entered, mainly using the Iranian route, according to Kpler.
Discounts fail to attract shipowners
Several Chinese and Indian refiners searched for vessels this week to enter the strait and load crude oil from Iraq’s Basra oil terminal, attracted by significant discounts, shipping sources said.
However, no ships have been chartered so far, as owners remain reluctant to enter the waterway due to security concerns.
Iraq’s state oil marketing company SOMO offered discounts of close to $30 per barrel for Basrah Heavy and Basrah Medium crude grades for August loading.
Route remains below normal levels
Before Iran closed the waterway following the start of the US-Israel war on 28 February, around 130 to 140 vessels typically passed through the Strait of Hormuz.
Industry sources said a proposed agreement between Iran and Oman, which would give Tehran control over ships entering the Gulf through the strait, faces challenges due to US sanctions and restrictive insurance clauses linked to payments.
Red Sea traffic shows increase
On Thursday, 26 vessels crossed the Bab el-Mandeb Strait in the Red Sea, compared with 19 the previous day, according to Kpler data.
LSEG recorded 28 vessels using a different tracking system and methodology.
The continued uncertainty around Hormuz shipping traffic is keeping energy markets focused on developments surrounding the key maritime passage.
Also read: Iran says Strait of Hormuz deal with Oman is in final stages
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