Strait of Hormuz Saw 55 Tankers Transit Saturday Then Drop to 12 on Sunday After Iran Threat

Vessel transits through the Strait of Hormuz fell to 12 on Sunday after Iran renewed its closure threat the previous day. OilPrice.com reported that the drop came after conflicting statements from Iran and the United States on the status of the key shipping route. Iran declared the strait closed on June 20 due to continued Israeli strikes in Lebanon.

U.S. Central Command stated the same day that 55 merchant ships had transited, carrying more than 17 million barrels of oil. Maritime intelligence firm Windward reported the Sunday decline from more than 21 vessels on Saturday.

Five of eight inbound vessels were traveling in dark mode, and neutral and European commercial tonnage was absent from the traffic, the firm said. The MOU-driven recovery that began June 18 has stalled within 24 hours of the announcement, Windward stated. Shipping activity remains well below normal levels.

-Iran memorandum of understanding raises several questions and does not offer sufficient information on safe routes, traffic separation, ship sequencing, reporting procedures, naval protection, and emergency response. Evan Greenberg, chief executive at Chubb Ltd, said on Sunday that security is assessed hour to hour in a war zone environment.

Only a narrow channel is being used, limiting the number of ships that can pass, he said.

The U.S. Navy has been working to open a broader set of channels. Insurers and shipowners continue to treat the region as a high-risk war zone, OilPrice.com reported. A full recovery in Gulf oil flows is not expected within days and appears weeks away at best.

The U.S. and Iran announced last week a deal to make a deal regarding the strait. Talks in Switzerland began with difficulty and were delayed.