Reopening: Strait of Hormuz awaits Iran-Oman agreement

Vessel traffic down 90% pre-conflict

(Map: Google)

A standoff between Iran and the United States is keeping the Strait of Hormuz all but closed to normal vessel traffic while Tehran and Oman finalize a proposed 60-day reopening framework.

Transit through the entryway to the Persian Gulf remains sharply depressed. Consultant Kpler recorded only eight vessels crossing on August 5 – five tankers and three bulk carriers – down from more than 100 vessels per day prior to the conflict.

About 20% of the world’s crude oil supply moves by ship out of the region, and the conflict has driven up global fuel prices while forcing a shift in trade connections in surrounding logistics hubs.

In the latest proposal, inbound vessels would use a route near Iran, while outbound vessels would ply an Omani-side route. The reported framework would impose no transit or service fees and could include regional participation in demining and technical work.

The U.S. position is that the southern route remains open to commercial vessels, but that assurance has not yet translated into normal shipowner confidence or traffic levels.

British security monitor UKMTO reported a tanker incident on August 2, and a separate advisory said an LNG tanker was struck by an unknown projectile and lost propulsion.

There is also a large “dark” component in vessel tracking: More than half of tracked crossings since late February reportedly had no reliable AIS signal, so raw counts understate activity but also make it difficult to verify whether shipping is genuinely normalizing.

A formal Iran-Oman announcement could release some of the vessels still waiting in the Gulf, but a return to normal tanker, LNG, and container flows will likely require several consecutive weeks of incident-free transits, clear routing protocols, credible mine-clearance arrangements, and a stable U.S.-Iran political agreement.

Read more articles by Stuart Chirls here.

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Stuart Chirls

Stuart Chirls is a journalist who has covered the full breadth of railroads, intermodal, container shipping, ports, supply chain and logistics for Railway Age, the Journal of Commerce and IANA. He has also staffed at S&P, McGraw-Hill, United Business Media, Advance Media, Tribune Co., The New York Times Co., and worked in supply chain with BASF, the world's largest chemical producer. Reach him at stuartchirls@firecrown.com.