Live updates: Follow the latest news on Iran war
Shipping traffic through the Strait of Hormuz remained practically at a standstill on Monday after the US forces seized an Iranian vessel in the Arabian Gulf.
This was the first such move by the US Navy since the start of the blockade on Iranian shipping last week.
The strait recorded only eight crossings on Monday, down from 36 on Saturday and up from six on Sunday, Kpler data provided to The National showed.
More than 700 ships were still stranded in the Arabian Gulf on Monday as the Strait of Hormuz remained tense. Before the Iran war began on February 28, about 140 ships passed through the waterway each day.
Odessa, an oil tanker with one million barrels in the hold, left the Strait of Hormuz to sail towards South Korea, Reuters reported, quoting Kpler data.
Nova Crest, an oil tanker, was also seen leaving Hormuz into the Gulf of Oman for Khor Fakkan in the UAE, the data showed.
Axon I, a carrier of liquefied petroleum gas, was seen sailing on the opposite side from Fujairah, indicating Sharjah in the UAE as a destination.
“There remains active risk to vessels transiting the strait,” said Ana Subasic, trade risk analyst at Kpler. “Two additional physical attacks were recorded on April 18, reinforcing the current threat environment, keeping risk premiums elevated and operators on edge.”
Safe passage through the strait that ordinarily transports one fifth of daily global crude supply remains uncertain after the US forces disabled and seized an Iranian-flagged cargo ship in the Gulf of Oman that was attempting to sail towards Bandar Abbas port, in breach of the US blockade on Iranian ships.
The US began the blockade on April 13 to choke off Iran’s oil revenue as it continued exports while blocking the strait for other international ships.
Since the start of the blockade last week, US forces have directed 25 commercial vessels to turn around or return to an Iranian port.
Meanwhile, shipping operators said they continued to remain “cautious and selective” in sailing through the strait.
‘’The stop-start nature of announcements around the Strait of Hormuz is now becoming the biggest risk factor for shipping more than the restrictions themselves,” Capt Farhad Patel, director of Dubai-based Sharaf Shipping Agency, told The National.
“Until stability and clarity are established, vessel movements will remain cautious and selective, with many operators choosing to wait rather than expose assets in a sensitive corridor like the Strait of Hormuz.”
Freight rates, meanwhile, have surged amid a shortage of ships in markets. Thousands of ships are stranded in the Gulf because of Middle East tension.
“If you average it out, freight is broadly up anywhere between 50 per cent to well over 200 per cent depending on segment, but in stressed windows, we’ve seen extreme spikes beyond that due to capacity withdrawal and risk pricing,” Capt Patel added.
Pradeep Sawhney, head of commercial at Dubai-based Emarat Maritime, said freight charges are up more than 500 per cent since the Iran war.
The company currently operates nine oil tankers but none of them is stuck in the Arabian Gulf waters and is busy in the European markets carrying oil from the US, he added.
