Benjamin Tang, Director & Global Head of Liquid Bulk, Commodities at Sea, said there is cautious optimism around the gradual reopening of the key oil transit route.
“We are cautiously optimistic about a Strait of Hormuz reopening. We have seen transits go up over the past week; we are now averaging roughly 30 transits per day compared to just 12 over the last few months. Of course, this is still a far cry from the 135 daily transits we witnessed before the war…” Tang told ANI.
The Strait of Hormuz, a vital chokepoint for global energy supplies, has seen significant disruption in recent months due to geopolitical tensions, impacting oil flows and shipping patterns worldwide.
Also Read | Eleven India-bound vessels have crossed Strait of Hormuz since signing of Iran-US MoU: MEA
Amid these challenges, Indian refiners have emerged as notably resilient, adapting swiftly to supply disruptions by diversifying sourcing strategies.
“Meanwhile, Indian refiners have been performing remarkably well. They have been highly dynamic, successfully sourcing crude from various alternative markets. Russian, Brazilian, and West African crude grades, alongside US crude, for that matter, have been a key part of that successful portfolio diversification…” Tang added.While shipping activity is gradually picking up, a full return to normalcy in the Strait of Hormuz remains uncertain, with market participants closely monitoring geopolitical developments and their impact on global oil trade flows.
Also Read | Monday ship traffic through Strait of Hormuz highest since start of war: monitor
Underscoring the rebound, US President Donald Trump claimed a record surge in oil movement through the strait.
“19 Millions Barrels of Oil flowed out of the Hormuz Strait yesterday, an all time RECORD. Oil prices are tumbling down, and the World is a much safer place!!!” Trump said on TruthSocial.
Adding to signs of a gradual recovery, ship-tracking data showed that three stranded supertankers transited the Strait of Hormuz on Tuesday. Moreover, seven empty Qatar-linked liquefied natural gas (LNG) carriers have entered the waterway in recent weeks, which is an early indication that Gulf gas shipments may be resuming.
Iranian-linked tankers have also continued to move through the crucial corridor, with traffic picking up notably on Monday as talks between the United States and Iran progressed, Reuters reported.
The first round of negotiations, which began on Sunday, concluded the following day, with both sides agreeing on a roadmap to reach a permanent deal within 60 days. The U.S. also announced a sanctions waiver valid until August 21, easing concerns over global oil and LNG supplies and putting downward pressure on prices.
Analysts expect that more crude cargoes stranded in the Gulf since the onset of the conflict will now begin to move out. At the same time, an increasing number of previously sanctioned tankers are returning to the route to load and export Iranian oil following the U.S. decision to ease restrictions, according to Reuters.