Commercial shipping through the Strait of Hormuz slowed significantly following renewed military exchanges between the United States and Iran. Tanker traffic on Thursday fell to its lowest daily level in nearly two weeks. Shipowners and insurers are currently reassessing security risks in the region.
The Strait of Hormuz serves as a conduit for approximately 20% of the global oil supply. The International Energy Agency warned that renewed conflict clouds the supply outlook. This slowdown follows a brief recovery in shipping volumes recorded in June.
WTI and Brent crude prices are on track for weekly gains of 5% to 6%. Prices posted a modest decline during Friday trading despite the weekly surge. Market concerns over potential escalation persist even as reports suggest diplomatic back-channels remain open.