The number of tankers crossing the Strait of Hormuz dropped to just one on July 23, the lowest since May 7, as shipping risks in the Middle East persisted and oil prices surged back to $100 a barrel. Shiptracking data from Kpler indicated a decrease from three tankers the previous day. The sole tanker, a very large crude carrier named New Giant, was transporting 2 million barrels of Iraqi Basrah crude and is expected to reach China’s Rizhao port by mid-August. Notably, no ships entered the Strait on July 23. Concurrently, U.S. military operations against Iran continued, marking the 13th consecutive night of strikes. In contrast, crossings at the Bab el-Mandeb strait increased to 32, with nine of those tankers carrying crude oil.
Why It Matters
The Strait of Hormuz is a critical maritime route for global oil shipments, with about 20% of the world’s oil passing through it. A significant reduction in tanker traffic can indicate rising geopolitical tensions or security concerns, which may influence global oil supply and prices. The U.S. military’s ongoing actions against Iran reflect heightened regional instability, which can have broader implications for energy markets and international relations. Additionally, the increase in tanker activity at the Bab el-Mandeb strait suggests shifts in shipping routes due to the risks in Hormuz, potentially leading to longer transit times and increased shipping costs.
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