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Strait of Hormuz sees shipping traffic fall as US-Iran tensions flare
Vessel transits through the strait, cited in the report as about 30 to 40 in recent weeks, dropped sharply after Friday amid renewed attacks, leaving energy flows largely stagnant.
Forexlive says US and Iran have resumed attacks with no sign of further negotiations, and that has pushed the Strait of Hormuz back toward a de facto closure.
The outlet notes shipping traffic through the strait has fallen materially, with recent weeks seeing roughly 30 to 40 vessels transit, while activity dropped dramatically after Friday, leaving “almost no visible traffic” on commercial tracking systems.
As a result, Forexlive says energy flows have been largely stagnant, increasing the likelihood that markets must price in an extended on again, off again disruption to shipping lanes.
The report adds that with disruption persisting, consumers and businesses could feel the impact sooner, and traders may have to reassess expectations that the oil market can offset the situation without meaningful changes in the Strait of Hormuz outlook.