Since hostilities resumed, vessel transits through the Strait of Hormuz have plummeted, pushing transportation costs higher.

Since the resumption of hostilities between the U.S. and Iran this week, transit volumes through the Strait of Hormuz have dropped significantly. According to Kpler data, Thursday’s transit volume fell to 22 vessels from 30 the previous day. Local time on Tuesday, Iran targeted vessels in the strait (including a damaged Qatari LNG carrier), sparking renewed clashes between the two sides. Since the reciprocal attacks on Tuesday, only two LNG carriers have entered the strait, while one has exited. After the U.S. and Iran signed an agreement on June 17 to launch negotiations to end the conflict, transit volumes had risen briefly, peaking a few days later before the ceasefire was broken. Shipping brokerage Braemar LNG said in a client report on Friday that shipowners, acting with caution, have withdrawn available capacity from the region "until the geopolitical situation becomes clearer". This move has reduced the number of available vessels and pushed up transportation costs.