Hormuz Shipping Slumps 90% as Brent Holds Near $88 Despite Iran Escalation
Updated
Updated · 24/7 Wall St. · Aug 17
Hormuz Shipping Slumps 90% as Brent Holds Near $88 Despite Iran Escalation
3 articles · Updated · 24/7 Wall St. · Aug 17
Summary
Five cargo ships transited the Strait of Hormuz on Saturday, down from 31 a week earlier, and none were registered for Sunday, leaving cargo movement effectively halted.
Kpler data show shipping through the strait is down 90% since the war began on Feb. 28, even though the waterway normally handles about 130 vessels a day and roughly one-fifth of global oil.
Brent still traded at $88.45 a barrel Monday, down 0.15%, while WTI fell 0.74% to $81.79, underscoring a muted market response despite the disruption.
The latest trigger was the expiry of the June U.S.-Iran memorandum without a follow-on deal, alongside a Wall Street Journal report that Iranian hardliners had prepared to violate it and expanded IRGC authority.
Oil majors have already priced in much of the war premium—Exxon is up 34.83% this year—while tanker operators such as Frontline, up 102.93%, are benefiting more directly from rerouting and higher war-risk costs.