Two Chinese-linked supertankers reversed course in the Strait of Hormuz this week as shipping risk stays elevated amid the Iran war. Tanker traffic through the waterway has thinned sharply, even as Brent crude pushes higher and Washington and Tehran trade conditions for reopening the strait.
Two Hong Kong-flagged supertankers broadcasting Chinese crews U-turned in the Strait of Hormuz this week, underscoring how tanker traffic through the conduit has thinned as the Iran war continues.
Supertankers reverse course
The Sea V, carrying crude from Iraq, was heading toward Hormuz from the Persian Gulf on Tuesday when it turned around and is now idling in the middle of the strait, according to ship-tracking data cited by Bloomberg. The Hestia entered the gulf along the Omani coast early Wednesday before reversing and sailing back out. It remains unclear why either vessel changed course.
A UAE-linked fuel tanker, the Amara, made several U-turns in the strait on Tuesday and still sat in the waterway near Iran as of Wednesday. The UK Navy reported that a separate vessel was struck by an unidentified projectile while exiting the gulf along the Omani coast on Tuesday, adding to a string of recent attacks. Not every ship is turning back, however — the Erecter, another Hong Kong-flagged tanker, was still crossing into the gulf after being booked to load crude from Iraq.
Traffic thins as sides trade conditions
Six commodity vessels transited the strait on Tuesday, down from nine a day earlier and against a 10-day daily average of 11, according to Kpler data cited by Reuters. President Donald Trump said Tuesday no talks with Tehran are underway or scheduled, though he maintained the strait remains open and functioning and that all water mines in the conduit have been removed or detonated.
Iran's parliament speaker and top negotiator, Mohammad Bagher Ghalibaf, said the strait will stay shut until Washington lifts its naval blockade of Iranian ports, unfreezes assets, removes oil sanctions and halts military operations. According to Reuters: "the strait will not be opened" Ghalibaf said. A framework ceasefire deal signed in June expired Monday, and Iran has reportedly signaled it intends to shift to a fully offensive posture in the conflict, which began with a joint U.S.-Israeli assault in late February.
Roughly a fifth of the world's oil and liquefied natural gas passed through the strait before the conflict began. Against that backdrop, Brent crude was last up 0.3% at $91.30 a barrel on Wednesday, marching higher this week amid fears of energy-driven inflation.
Sources: Investing.com/Reuters, Rigzone/Bloomberg
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