Ship crossings through Strait of Hormuz plummet 77% amid US-Iran tensions

Ship crossings through the Strait of Hormuz have plummeted by 77% in a single day, with only Iran-approved routes being utilized. This significant drop has occurred amid ongoing tensions in the U.S.-Iran conflict, particularly over the strategic chokepoint that is crucial for global oil and gas shipments. While crossings at the Bab el Mandeb strait have remained steady, the decline in Hormuz traffic aligns with recent reports of reduced activity in the region, largely due to security concerns and geopolitical tensions. Observers are monitoring if this trend will persist and affect the possibility of a return to normal traffic levels by the end of September. Key Takeaways The 77% drop in ship crossings at Hormuz suggests a severe disruption in traffic flow, consistent with ongoing geopolitical tensions. Market pricing currently reflects a decreased likelihood of Hormuz traffic normalizing by September 30, with YES odds dropping to 16.5%. The consistent use of Iran-approved routes may indicate continued caution among commercial shippers amidst the crisis. What to Watch Markets are closely watching for any signs of diplomatic progress or de-escalation, such as ceasefires or security g...