Strait of Hormuz: Ship Traffic Spikes Then Plummets After Attacks

Commercial ship traffic in the Strait of Hormuz spiked over the weekend but quickly slowed after attacks on vessels. On Saturday, at least 20 ships transited the strait, including the oil tanker FPMC C Lord, carrying 2 million barrels of Saudi crude to Taiwan. However, by Sunday, traffic dropped to almost nothing as security fears escalated. Oil prices jumped about 6% on Monday due to the situation. Iran had briefly opened the strait to commercial traffic, following a U.S.-brokered ceasefire in Lebanon, but quickly reversed its decision after President Trump refused to lift the blockade on Iranian ports. The Iranian Revolutionary Guard fired on a tanker, and a projectile struck a container ship, reportedly under Indian flags. India expressed deep concern over the attacks. Meanwhile, the U.S. Navy responded by firing on an Iranian cargo ship in the Gulf of Oman, claiming it attempted to breach the naval blockade. The bottom line? The ongoing tensions in this critical shipping lane could impact global oil prices and trade routes, affecting consumers everywhere.