Iran Declares Strait of Hormuz Closed Again, Ship Transits Fall Sharply

Iran announced it had closed the Strait of Hormuz again on Saturday, citing Israeli strikes in Lebanon and the failure of the United States to maintain a ceasefire there. Ship tracking data recorded a steep drop in traffic the next day. Commercial analytics firm Kpler reported five vessels passed through the strait on Sunday, down from 26 the previous day.

Three of the vessels were Very Large Crude Carriers carrying two million barrels of Saudi crude and fuel oil each.

Traffic Data Diverges U.S.

Central Command stated that 55 merchant ships transited the strait on Saturday and that safe passage remained intact. The discrepancy between the military figure and commercial tracking data remains unexplained. A supply chain expert at McMaster University said the gap could reflect vessels turning off transponders to avoid detection while hugging the Omani shoreline.

The same analysis noted that both sides have incentives to present different pictures of traffic levels.

Iranian negotiators held talks in Switzerland on Sunday focused on keeping the waterway open. The strait normally carries about one-fifth of global oil and liquefied natural gas supplies. Oil prices fell about 0.9 percent on Monday morning in Asia, with Brent crude trading just below $80 a barrel.

Asian equity markets opened higher despite the renewed tensions. Tokyo’s Nikkei 225 rose 1.8 percent, Seoul’s Kospi gained 1.5 percent, and Taipei’s Taiex surged 2.6 percent.