Shipping traffic through Strait of Hormuz drops as Iran-Oman talks eyed

Shipping data showed that traffic through the Strait of Hormuz dropped to 33 vessels between Monday and Thursday this week, down from 50 during the same period last week, as markets closely monitor talks between Iran and Oman for any signs of progress in reopening the vital waterway.

Kpler data revealed that four vessels passed through the strait on Thursday, including a very large crude carrier named Nissos Kia, which was transporting around two million barrels of Basra crude loaded in Iraq.

The other three vessels were two liquefied petroleum gas carriers and a small bulk cargo ship.

According to Kpler, only six crude oil tankers have left the strait since the start of the week. So far, 21 ships have entered, most following the route designated by Iran.

Shipping industry sources said several Chinese and Indian refiners tried this week to send ships into the strait to load crude from Iraq’s Basra terminal, seeking to take advantage of steep discounts.

However, no ships have been able to enter so far, as shipowners remain cautious about passing through the strait.

Iraq’s State Oil Marketing Organization (SOMO) has offered discounts of nearly $30 per barrel on Basra Heavy and Basra Medium crude for customers willing to load August shipments.

Before Iran closed the waterway at the start of the US-Israeli war against it on February 28, between 130 and 140 ships would typically transit the strait.

Oil industry sources said the proposed agreement between Iran and Oman, which would give Tehran control over vessels entering the Gulf via the Strait of Hormuz, will be difficult to implement due to US sanctions and insurance restrictions linked to payments.

Kpler data also showed that 26 ships passed through the Bab al-Mandab Strait in the Red Sea on Thursday, up from 19 the previous day. By comparison, the London Stock Exchange Group counted 28 ships, based on a different tracking system and methodology.