Tanker Traffic Slows in Strait of Hormuz After US-Iran Clashes

• Daily tanker traffic had recently reached 40 ships, still far below the pre-conflict average of 125-140 daily sailings through the strait, which handled about a fifth of global oil supplies before the war
• Global oil supply rose 4.1 million barrels per day in June but remains 9.4 million bpd below pre-war levels, with the IEA warning of tight diesel and gasoline supplies
• U.S. forces struck approximately 90 Iranian military targets after Iran allegedly attacked three tankers; Iran retaliated by firing missiles at U.S. bases in Kuwait, Qatar, Bahrain, and Jordan

Market Summary: Tanker Traffic Slows in Strait of Hormuz After US-Iran Clashes

Key Developments:

Daily tanker traffic through the Strait of Hormuz has slowed following renewed US-Iran hostilities this week. Oil prices rose approximately 4-5% week-over-week amid escalating tensions over control of the critical waterway.

Supply Impact:

The International Energy Agency reported global oil supply increased by 4.1 million barrels per day (bpd) in June as shipping resumed, but remains 9.4 million bpd below pre-war levels. The Strait of Hormuz, which previously handled one-fifth of global oil supplies, saw daily tanker traffic reach 40 ships before this week's incidents—well below the pre-conflict average of 125-140 daily sailings.

Recent Hostilities:

Washington accused Iranian forces of attacking three Qatari and Saudi tankers, prompting US strikes on approximately 90 Iranian military targets, killing 14 and injuring 78. Iran retaliated by launching 10 ballistic missiles at US facilities in Jordan, Kuwait, Qatar, and Bahrain. President Trump declared the interim truce "over," though US officials confirmed technical talks continue, with Qatar mediating.

Background Context:

The conflict stems from February 28 when Supreme Leader Ayatollah Ali Khamenei was killed in a US-Israeli airstrike. His son Mojtaba succeeded him but has not appeared publicly since being injured in the same strike. Iran held final condolence ceremonies this week.

Market Concerns:

The IEA warned of tight diesel and gasoline supplies, noting refineries have been slower to respond than crude prices. The ongoing instability threatens global energy recovery and highlights political pressure on Trump ahead of midterm elections amid high gas prices and voter discontent.