US-Iran tensions slow tanker traffic through Strait of Hormuz, trade group says

A growing number of cargo ships are said to be steering clear of the Strait of Hormuz, the vital artery for global oil and gas shipments, as tensions spike in the Middle East following US airstrikes on Iranian nuclear sites.The world’s largest shipping trade group, Bimco, says several operators have begun halting transits through one of the world’s most critical chokepoints, which links the Persian Gulf with the Gulf of Oman.While ship traffic had remained relatively stable in recent weeks, the mood shifted rapidly after Saturday’s US strikes on key Iranian enrichment facilities.“Before the US attack, the impact on shipping patterns was limited,” Jakob Larsen, Bimco’s head of maritime security, told CNBC.“Now, after the US attack, we have indications that the number of ships passing is reducing.”Larsen warned that if Iran begins retaliating by targeting vessels, “it will most likely further reduce the number of ships transiting through the [Strait of Hormuz].”About 20% of worldwide oil and petroleum product consumption through 2024 and early 2025 was shipped through the strait, according to the US Energy Information Administration.It’s also the primary export route for Qatari liquified natural gas, with around a fifth of all global LNG supply passing through last year, the agency said.Oil futures slid on Monday as traders appeared to downplay the risk of a major disruption to Middle East crude supplies, despite the US launching direct strikes on Iran’s nuclear facilities over the weekend.West Texas Intermediate (WTI) crude dropped 84 cents, or 1.14%, to $73 per barrel by 10:30 a.m.ET.

Brent crude, the global benchmark, slipped 81 cents, or 1.05%, to $76.20.Prices initially surged overnight, with Brent topping $81 for the first time in weeks and WTI reaching its highest level since January.But momentum reversed after President Trump posted a message demanding that “everyone” keep oil prices lower.It was unclear who he was targeting, thou...