Hormuz Traffic Remains Depressed as Iran and Oman Weigh Temporary Corridor

Vessel traffic at the Strait of Hormuz remains well below recent averages as Iran and Oman discuss a temporary shipping corridor in the key chokepoint that could lead to a kind of ‘interim’ reopening.  

Only five commodity vessels moved in either direction in the Strait of Hormuz on Tuesday, roughly the same number as on Monday, but well below the 10-day average of 15 ships, according to ship-tracking data by Kpler as of early Wednesday.

Two tankers laden with liquefied petroleum gas (LPG) and one carrying bitumen transited the Strait outbound, while two empty product tankers moved inbound from the Gulf of Oman into the Persian Gulf, the data cited by Reuters showed.

Since August 22, the number of vessels crossing the Strait of Hormuz has gradually declined, from as many as 20 inbound, 14 outbound, and at least three transits in dark mode, data by maritime intelligence firm Windward showed. Traffic has slumped to as few as 4 inbound, zero outbound, and 3 dark crossings as of Monday.

The majority of oil exports, about 65%, from the Strait of Hormuz have China as their destination, according to Windward’s data.

The subdued traffic at Hormuz comes as Oman and Iran held talks on establishing a temporary shipping corridor through the chokepoint.

In a joint statement, Oman and Iran said they held consultations which “focused on the importance both countries attach to the resumption of safe navigation through the Strait of Hormuz while preserving their sovereignty and sovereign rights.”

The foreign affairs ministers of the two countries discussed a proposed framework that “includes the establishment of a joint temporary navigational corridor through the Strait of Hormuz and an agreement to implement a joint project to clear the Strait of mines,” Oman and Iran said.  

Despite the talks with Oman on a temporary and tentative Hormuz reopening, Iran warned early on Wednesday that the Strait of Hormuz would remain closed unless the U.S. ends the war.  

By Tsvetana Paraskova for Oilprice.com

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