Shipping traffic in Strait of Hormuz drops to lowest level since May

Shipping traffic through the Strait of Hormuz has slowed to its lowest level since May, with an average of 10 commodity ships transiting the waterway per day over the past 10 days, according to Reuters, citing shipping data by Kpler.

The 10-day moving average was 10 on Sunday, down from more than 15 on Friday and nearly 13 on Saturday. Only two vessels passed through the strait on Saturday, while six went through on Sunday. Kpler data showed that one very large crude carrier (VLCC) and three bulk carriers entered the strait on Sunday, while no VLCCs have exited since Wednesday.

Separately, LSEG data showed that a tanker carrying refined products from a Saudi port attempted to leave the Persian Gulf through the Strait of Hormuz on Sunday but turned back, Reuters reported.

The slowdown comes amid heightened maritime tensions following a new round of US and Iranian attacks on tankers. The UK's Maritime Trade Operations Agency says 27 projectile attack incidents have damaged vessels operating in and around the strait since July 6.

According to Reuters, the data indicates a significant reduction in shipping activity in the strategic waterway, which is crucial for global oil and gas transportation. The report by Reuters added that the decline in traffic reflects the impact of recent security concerns on commercial shipping operations.