Strait of Hormuz transits drop to just three ships amid US-Iran escalation

A drone struck an oil tanker near Iraq's Basra terminal on Thursday as shipping through the Strait of Hormuz fell to its lowest level since May, with just three commodity vessels crossing the waterway that day amid renewed fighting between the United States and Iran.

Iraq's oil ministry said loading operations continued normally after the incident, which it described as a tanker reporting the sighting of a "foreign object" in its vicinity that caused no fire or damage. The head of Iraq's state oil marketer SOMO, Ali Nazar, told Reuters ↗ 2.29% the incident "is not targeting Basra Oil Terminal. Its target is another place. Loading is at normal rates depending on the vessels' availability."tankstorage+1

As a precautionary measure, the tanker was towed outside the port. The incident came a day after a separate drone came down at Iraq's Faw port without causing damage, according to Iraq's state news agency.reuters+1

Strait Traffic Collapses

The Basra drone strike adds to a rapidly deteriorating security situation across the Persian Gulf. Reuters reported on Friday that just three commodity vessels crossed the Strait of Hormuz on Thursday, with no very large crude carriers or liquefied natural gas tankers passing through for a second consecutive day. Most ships have halted or made U-turns after recent Iranian attacks and the reimposition of a U.S. blockade on Iran-related shipping.reuters

The crisis escalated sharply after Iran attacked three vessels navigating the strait on or around July 7, with a tanker catching fire off the coast of Oman after being struck by a projectile, according to UK Maritime Trade Operations. Iran's IRGC subsequently declared the strait closed "until further notice." The United States responded with strikes on more than 300 Iranian military targets over three nights of operations.reuters+2

Dark Ships and Offshore Transfers

Despite the near-shutdown of overt traffic, signs indicate some vessels continue to transit under elevated risk. A handful of oil tankers have been conducting ship-to-ship transfers off Oman's coast, offloading cargoes onto other vessels after passing through the strait. Ships have also been observed going dark — switching off transponders — before reappearing outside the Gulf of Oman, suggesting covert crossings.infra.economictimes.indiatimes+1

CNBC reported that transits had already fallen roughly 60 percent by last Sunday compared with the prior week, with just 14 ships crossing that day. The UN's International Maritime Organization had previously warned that "all transit through the Strait should be avoided until the necessary safety conditions are in place."news.un+1

The re-escalation has driven up global energy prices and left the world's most important oil shipping route in a state of effective blockade for the second time since the U.S.-Iran war began in late February.reuters