Shipping halted in Strait of Hormuz as Iran again declares waterway closed

• Traffic through the strait dropped to 12 ships on Sunday from 21 the previous day, with 5 of 8 inbound vessels 'going dark' by disabling their tracking systems - far below prewar levels of over 100 ships daily
• U.S. and Iranian delegations held talks in Switzerland on Sunday to finalize a 60-day deal that would reopen the strait toll-free and end hostilities in Lebanon, with officials describing the negotiations as 'constructive but tense'
• The U.S. military denied Iran's claims of closure, stating 'Iran does not control the Strait of Hormuz,' while at least 15 Iran-flagged oil tankers were observed leaving the Gulf of Oman with active tracking signals

Summary

Strait of Hormuz Shipping Disruption

Shipping through the Strait of Hormuz, which handles approximately 20% of global oil traffic, stalled over the weekend after Iran declared the strategic waterway closed again. Maritime intelligence firm Windward reported only 12 ships transited on Sunday, down from over 21 the previous day—far below pre-conflict levels of 100+ daily vessels.

Key Developments:

• Five of eight inbound vessels were operating "dark" (AIS transponders disabled), resembling patterns from the late-blockade period
• Iran cited Israeli ceasefire violations and continued strikes in southern Lebanon as justification for the closure
• The U.S. military denied Iran's claims, stating the waterway remains open and "Iran does not control the Strait of Hormuz"

Traffic Data:

• Last week saw recovery with 20 tankers transiting Thursday (highest since June 2), but this rebound has "hit a snag"
• Lloyd's List confirmed at least 15 Iran-flagged Suezmaxes and VLCCs continued moving outbound with active AIS signals despite closure claims

Diplomatic Context:

The disruption follows a U.S.-Iran memorandum of understanding (MOU) signed Wednesday, which included a 60-day toll-free reopening agreement. Vice President JD Vance led U.S. talks in Switzerland over the weekend, described as "constructive but tense." Iran secured oil export waivers, port blockade lifting, and asset releases under the MOU.

Market Implications:

The renewed uncertainty threatens oil supply chains through the world's most critical petroleum chokepoint, with potential for price volatility as diplomatic negotiations continue amid conflicting claims about the strait's operational status.