Hormuz tanker transits slump as war insurers advise avoiding the strait

Commercial shipping through the Strait of Hormuz has fallen sharply following the latest exchange of attacks between the United States and Iran, with vessel owners' representatives reporting that transits along the southern route off Oman's coast have dropped into single digits after renewed attacks on merchant ships and subsequent retaliatory strikes. Traffic along the northern route nearer Iran has stayed above 20 vessels a day but remains well below the more than 70 daily transits seen after an earlier ceasefire.

War insurers have advised shipping companies to halt Hormuz sailings while others review their policy terms, after three commercial tankers were attacked in the waterway. The disruption pushed war risk cover higher, rising to around 3% of a ship's value from about 2% a week earlier, an increase that adds thousands of dollars a day for owners and operators, while oil prices rose several percent globally. The international maritime regulator said sailings through Hormuz should be avoided as long as the safety and security of crews cannot be assured, warning that high insurance costs are compounding the strain on shipowners and operators.

The vessels that were attacked had taken a route close to the coast of Oman rather than the passage designated by Iranian forces for commercial traffic. Owners' representatives said the latest military exchanges were more intense and geographically broader than previous breakdowns, extending to sites affecting neighbouring Gulf states, though the region appeared relatively quiet after two days of strikes. Technical discussions between officials were reported to be continuing, covering both nuclear issues and future arrangements for Gulf shipping, even as a proposed seafarer evacuation plan remained on hold.