Hormuz Shipping Traffic Barely Budges as Tanker Attacks, Mine Risks Persist

As the U.S. preps a flurry of economic sanctions targeted at Iran and its trading partners in lieu of military strikes, the Strait of Hormuz remains largely barren of shipping traffic.

On Wednesday, there were 10 vessel transits through the conduit, up from eight that crossed through the day prior, according to data from commodity intelligence platform Kpler. Wednesday’s transits remained below the 10-day moving average of roughly 15 vessels.

The lack of traffic comes amid mediation efforts to end the nearly six-month war in Iran, with Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani holding talks with Iranian officials in Tehran Thursday.

Al Thani said the visit also underscored “the importance of respecting freedom of navigation in the Strait of Hormuz in accordance with international law.”

Iranian and Omani officials indicated Tuesday there was progress on a framework agreement to open a temporary safe shipping route through the Strait of Hormuz and undertake mine clearance operations to restore safe navigation through the strait.

The joint statement did not mention U.S. involvement, with the mine-clearing project contradicting President Donald Trump’s prior claim that all mines in the strait had been removed by the U.S. Navy.

Iran’s Islamic Revolutionary Guard Corps (IRGC) followed up the official statement Wednesday by unveiling it reached a revenue-sharing agreement with Oman on the strait, a move that would draw backlash from U.S. officials.

“Agreements have been reached regarding each country’s share of the strait’s waters as well as Iran and Oman’s share of its revenues,” an IRGC spokesman said Wednesday, according to the state-run Sepah News agency. “We have reached results that are acceptable to both sides.”

However, the foreign ministries of both countries have not confirmed the revenue sharing. The White House has not commented, but President Donald Trump threatened to attack Oman, a U.S. ally, earlier this month if the Gulf state intervened in American efforts to complete a peace deal with Iran.

Vessels have continued to endure more attacks for sailing through the conduit, which before the war in Iran harbored as much as 20 percent of the world’s oil supply.

Late Wednesday, the United Kingdom Maritime Trade Operations Centre (UKMTO) announced that a Kuwaiti-flagged oil tanker, the Al Salam II, was struck by an “unknown projectile” and caught fire Tuesday while transiting the Strait of Hormuz.

The strike hit just above the waterline, causing the small fire, which was extinguished by the ship’s crew. All crew were reported safe. There has been no report of environmental impact.

That was the UKMTO’s second reported strike on a Hormuz-traversing oil tanker in three days. Greek media reports identified the Liberian-flagged Metro Venetian as the disabled vessel, owned by Greek shipping company Metrostar Management. The tanker was subsequently towed to the Port of Fujairah with no casualties or pollution.

There remained a continued risk of drifting or uncharted mines in and near the Iranian and Omani designated shipping corridors, with mine danger areas still active, the UKMTO said.

Iran’s Persian Gulf Strait Authority has named 46 vessels it says have violated transit protocols in the Strait of Hormuz, threatening fines, detention or confiscation.

The restricted list includes very large crude oil carriers, liquefied natural gas (LNG) and liquefied ⁠petroleum gas (LPG) tankers and clean product vessels, among others.

Some of the named ships are owned by the U.A.E,’s ADNOC Logistics and Shipping and Saudi Arabia’s national shipping carrier Bahri.

The Hormuz disruptions are still impacting other regions as container ships largely avoid the conflict-ridden area over security concerns.

According to maritime consultancy Drewry, the Middle East crisis added further pressure on south Asian ports, as vessel and cargo rerouting increased congestion at India’s Jawaharlal Nehru Port (also known as Nhava Sheva Port).

This week through Thursday, average vessel waiting times reached 36 hours, up from 28 hours in the week prior.

The congestion at the Indian port, combined with backlogs at Chinese ports in recent weeks, is sending rates sky high.

Ocean spot freight rates from Shanghai to Jawaharlal Nehru Port rose 20 percent in the week to $3,568 per 40-foot container, well ahead of the pace of Drewry’s Intra-Asia Container Index, which rose 10 percent this week to $1,199—a three-year high.

On a four-week basis, the China-to-India route has more than doubled. The price to send a 40-foot container from Shanghai to Jawaharlal Nehru Port escalated 118 percent from July 30, when it cost $1,633 on average.