Strait of Hormuz shipping traffic hits record low amid US-Iran tensions

Shipping traffic through the Strait of Hormuz fell to unprecedented lows on Monday, with only a single commodity vessel reported to have passed through the critical waterway, according to data shared by @AJEnglish. This marks the lowest daily volume recorded since May 7, highlighting the severe disruption in a channel that typically handles around 20% of the world’s oil and liquefied natural gas shipments. The drop in maritime activity is occurring amidst heightened tensions between the United States and Iran following a series of military confrontations and diplomatic standoffs, with Iran asserting control over the strait and the U.S. maintaining a naval blockade. The drastic reduction in shipping movements suggests the ongoing geopolitical conflict continues to impact commercial operations significantly. Market participants are closely monitoring the situation, with current predictions indicating skepticism about a return to normal traffic levels by the end of September. As of now, the probability of normalization by September 30 is priced at just 5.5% YES, down from 6% a day ago and 10% a week ago. Key Takeaways Shipping data suggests traffic through the Strait of Hormuz is near...