Strait of Hormuz Blockade: Impact on Global Trade and Energy

The shipping crisis in the Strait of Hormuz continues, despite a two-week ceasefire between the US and Iran. Just five vessels crossed the strait on Wednesday, down from eleven the day before. Over 600 ships, including 325 tankers, remain stranded in the Gulf. Kpler's trade risk analyst, Ana Subasic, warns that even if the ceasefire holds, only 10 to 15 vessels may safely transit each day. US President Donald Trump accuses Iran of not honoring the ceasefire, while Iran's Foreign Minister blames the US for the breakdown. This waterway is crucial, carrying one-fifth of the world's oil and liquefied natural gas. Typically, 120 to 140 vessels transit daily. Oil prices are rising again, reflecting the reality of halted maritime traffic. The bottom line is that this ongoing blockade complicates efforts to address the global energy crisis, impacting everyone’s wallet at the gas pump.