Hormuz traffic still blocked as Iran tries to formalize control

Ship traffic through the Strait of Hormuz remained blocked Thursday, even as a handful of Chinese vessels lined up to escape, with a very fragile ceasefire between the US and Iran yet to improve traffic flows in the region. 

Just seven ships, all with some kind of prior link to Iran, were observed making the voyage out of the Persian Gulf on Wednesday and into Thursday morning. Normal transits in both directions are more like 135 a day.

In a sign of Tehran’s efforts to formalize control over the waterway, Iran’s Ports and Maritime Organization published two safe routes for shipping, according to state media. It said the routes were necessary to avoid the potential presence of various anti-ship mines in the usual sailing routes through narrow strait. 

While Iran-linked vessels headed through the waterway, three Chinese oil tankers, fully-laden with Saudi and Iraqi crude, sailed toward Hormuz on Thursday before dropping anchor near the approach to the waterway that handles about a fifth of the world’s oil and liquefied natural gas. 

The impasse comes despite the emergence of a ceasefire between the US and Iran earlier this week that caused oil to plunge.

While flows remain all but halted, the market is still acutely short of supply and despite a drop in futures prices, real world barrels continue to be scarce. US Vice President JD Vance said........

© Fortune