Gulf Shipping Traffic Plummets to 6 Vessels

Gulf shipping traffic via the Strait of Hormuz has fallen to a mere six vessels, a drastic decline from the pre-war average of 130-140 ships per day. This significant decrease is attributed to the ongoing conflict and stalemate between the US and Iran.

On Tuesday, four commodity vessels, including two empty oil product tankers, entered the waterway, while two vessels - a small tanker laden with liquefied petroleum gas and another carrying residual fuels - exited the Strait. In contrast, on Monday, 25 vessels transited the Bab el-Mandeb strait on the Red Sea, which is broadly unchanged compared to the 10-day average of nearly 24 ships.

The US and Iran had signed an interim deal on June 17 to open Hormuz, resulting in a surge in ship crossings to a five-day average of about 60 on June 26. However, traffic on Tuesday was about 80% below this post-deal peak. The number of vessels tracked transiting the Strait of Hormuz fell to a one-week low of eight, according to data reported by the Reuters news agency.

US President Donald Trump responded to Iran's conditions for a peace deal by laying out his own demands that Iran pay compensation for people killed in wars, attacks, and protests. This proposal was a response to Tehran's demands for compensation and an end to sanctions, which were largely in line with the terms of a preliminary peace deal signed in June.

## Why it matters The decline in shipping traffic via the Strait of Hormuz has significant implications for global trade and the economy. The Strait is a vital waterway, and any disruption to traffic can have far-reaching consequences. The ongoing tensions between the US and Iran have led to a breakdown in the preliminary peace deal, and it remains to be seen how the situation will unfold.

The stakes are high, with the US and Iran engaging in a war of words and demands. The US is seeking compensation for people killed in wars, attacks, and protests, while Iran is demanding an end to sanctions and compensation. The situation is complex, and a resolution is unlikely to be reached soon. As the conflict continues, the impact on global trade and the economy will only continue to grow.