Key facts
- Iran and Oman are discussing a plan to jointly manage shipping routes in the Strait of Hormuz.
- Shipping traffic through the Strait of Hormuz remains constrained despite increased vessel transits.
- Security risks and high war risk insurance costs continue to suppress Gulf crude exports.
- Five tankers transited the Strait of Hormuz on Tuesday, with three entering and two exiting.
- Three LNG tankers have been attacked in the waterway in the past month.
- Traffic levels in the Strait of Hormuz are significantly lower than before late February.
Iran and Oman are reportedly in discussions to establish a joint control plan for shipping routes within the Strait of Hormuz, a critical global energy chokepoint. This initiative emerges amidst ongoing geopolitical tensions and a recent increase in maritime traffic through the strait. Despite a slight uptick in vessel transits, overall Gulf crude exports remain subdued due to persistent security risks and high war risk insurance costs, according to data from Kpler. Five tankers transited the chokepoint on Tuesday, with three entering and two exiting. Traffic levels are a fraction of what they were before late February, when the average daily throughput was between 130 and 140 vessels. Three LNG tankers have been attacked in the waterway in the past month, with two of them being Qatari vessels. QatarEnergy has reportedly purchased 33 LNG cargoes, signaling an effort to ramp up sales despite ongoing force majeure at its Ras Laffan gas hub.