Strait of Hormuz Traffic Plummets: Oil Exports at Risk

Shipping through the Strait of Hormuz has plummeted to near-zero levels. In April, vessel traffic dropped to just 12 ships a day, down from an average of 135. This significant slowdown comes amid ongoing conflict between the U.S. and Israel against Iran, despite a two-week truce. The data shows that no crude oil was loaded at major ports in Iraq, Kuwait, the UAE, and Saudi Arabia. This impacts about 14.2 million barrels of crude oil per day. In contrast, Iranian crude exports stand at around 1.38 million barrels per day during this time. The Strait of Hormuz is crucial, carrying roughly 20 percent of the world’s oil supply. Since strikes on February 28, Iraq’s oil production has fallen dramatically from 3.5 million barrels per day to about 1.3 million. Exports have also declined to around 800,000 barrels per day. Here's the thing: this disruption in one of the world's most important shipping routes can lead to rising oil prices and affect economies globally.