Iran-linked vessels pass through Hormuz ahead of US blockade

Ahead of a US naval blockade effective Wednesday, shipping data on Tuesday showed an increase in vessels, predominantly linked to Iranian trade, transiting the Strait of Hormuz. Nine of the eleven vessels that passed through the strait on Tuesday used the Iranian route, including three empty oil tankers entering and several tankers exiting with Iranian exports such as crude, refined products, and liquefied petroleum gas. This activity occurred as US President Donald Trump reimposed sanctions on Iranian ports and threatened further action unless negotiations resumed. The intensified US-Iran conflict has led to a slowdown in overall shipping through the Strait of Hormuz, a critical global oil and LNG transit point, and has caused Middle East spot crude prices to strengthen. Goldman Sachs noted that "the next phase of Gulf flow recovery could be slower than the initial phase even after geopolitical de-escalation," due to continued risk aversion among shippers.