Transits through the Strait of Hormuz fell to five ships Sunday, heightening concerns over crude supply disruptions amid escalating regional tensions.
Shipping traffic through the Strait of Hormuz collapsed to just five vessels on Sunday, down from 26 the previous day, as Iran reiterated threats to close the critical chokepoint. The sharp decline exposes global oil markets to heightened supply risks, with three Very Large Crude Carriers carrying 2 million barrels each of Saudi crude among the few transits recorded.
The strait handles roughly one-fifth of global oil flows, making it the most vital route for Middle Eastern crude exports. Prior transits averaged over 20 vessels daily, with producers like Saudi Arabia, the UAE, and Kuwait heavily reliant on the passage. ADNOC and Kuwait Petroleum have already begun offering cargoes loadable from alternative ports, signaling preparations for prolonged disruptions.
Crude prices and freight rates are expected to face elevated volatility until clarity emerges on whether the closure threat materializes. Market participants are closely monitoring developments, with traders viewing producer actions as a more reliable indicator than diplomatic statements.