Hormuz Observatory reports sharp decline in navigation; only 15 ships cross strait in 24 hours

Maritime traffic in the Strait of Hormuz has plummeted, with only 15 ships traversing the vital waterway in the past 24 hours, a stark reduction to roughly a quarter of the usual daily average of 60 vessels. This dramatic decrease highlights the escalating pressures on global shipping routes.

The decline in traffic is occurring alongside unprecedented surges in maritime insurance costs and shipping rates. War risk insurance premiums have soared to 8.5%, a massive increase from the normal 0.15%, representing a 56.7-fold rise. Similarly, spot freight rates for Very Large Crude Carriers (VLCCs) have jumped 470% compared to pre-crisis levels, reaching 285 Worldscale points.

Data from the Hormuz Peace Endeavors Center reveals 150 ships are currently in waiting areas, including 85 oil tankers and 35 bulk carriers. The volume of goods moved through the strait has also fallen to approximately 1.5 million tons daily, down from a normal average of 10.3 million tons, indicating a severe disruption to energy supply chains.

Amid these logistical challenges, Brent crude oil prices have climbed to around $98.70 per barrel. The ongoing security tensions continue to cast a shadow over one of the world's most critical energy corridors, prompting diplomatic efforts, including discussions of a 10-day ceasefire and Qatari mediation on the Iranian nuclear file.