Hormuz traffic falls to 33 vessels as Iran-Oman talks watched

Shipping traffic through the Strait of Hormuz has slowed markedly this week, with just 33 vessels transiting between Monday and Thursday, down from 50 in the same period a week earlier, according to Kpler data. The decline comes as markets closely track negotiations between Iran and Oman over the future of the strategic waterway.

On Thursday alone, four vessels passed through the strait, including the very large crude carrier Nissos Kea, which was carrying roughly 2 million barrels of Basrah crude loaded in Iraq. The remaining three ships comprised two liquefied petroleum gas carriers and one minor bulk carrier.

So far this week, only six crude oil tankers have exited the strait, while 21 vessels have entered, mostly via the Iranian route. The reduced activity reflects continued caution among shipowners, despite growing interest from Chinese and Indian refiners in loading crude at Iraq's Basrah Oil Terminal.

Those refiners have been drawn by steep discounts on Iraqi crude. Iraq's state oil marketer SOMO has offered price cuts of close to $30 per barrel for Basrah Heavy and Basrah Medium grades for August loading. However, no vessels have been fixed so far, as owners remain wary of entering the waterway.

Before the waterway was closed following the start of the U.S.-Israeli war on February 28, roughly 130 to 140 ships would typically transit the strait. A proposed arrangement between Iran and Oman that would give Tehran control over ships entering the Gulf through Hormuz is seen as difficult to implement, given U.S. sanctions and restrictive insurance clauses on payments, industry sources said.

Elsewhere, traffic through the Bab el-Mandeb strait on the Red Sea showed signs of recovery, with 26 vessels transiting on Thursday, up from 19 the previous day, according to Kpler. LSEG, using a different tracking system, counted 28 vessels.