Ship Traffic Plunges After Iran Re-Closes Strait of Hormuz Following Israeli Strikes on Lebanon

The number of ships transiting the Strait of Hormuz plummeted on Sunday, with only five vessels recorded passing through compared to 26 the previous day, according to data from analytics firm Kpler. This sharp decline followed Iran's announcement that it had once again closed the crucial waterway.

Iran's Islamic Revolutionary Guard Corps declared the strait shut on Saturday, citing Israeli and U.S. violations of a recently extended interim peace deal. This move reversed a decision made just last week when Iran had lifted its effective blockade after agreeing with the United States to extend a 60-day ceasefire to facilitate peace negotiations.

Despite Iran's declaration, the U.S. military stated that commercial vessels were continuing to operate. Data indicated that on Saturday, three Very Large Crude Carriers (VLCCs) carrying crude oil from the United Arab Emirates, Kuwait, and Iraq exited the strait, along with three other tankers carrying various oil products. Thirteen ships had entered the strait on Saturday, including two VLCCs.

Some Gulf producers, such as Abu Dhabi National Oil Co and Kuwait Petroleum Corp, have offered crude oil sales with the option for loading either inside or outside the Strait of Hormuz, potentially mitigating the impact of such closures. However, the data from Kpler may not account for vessels that turn off their transponders while navigating the Gulf.