Rising Strait of Hormuz Traffic May Reduce Iran's Leverage

Oil and tanker traffic through the Strait of Hormuz has increased as Iran and the United States pursue negotiations aimed at ending seven months of hostilities, potentially changing the dynamics of the talks.

Oil and tanker traffic through the Strait of Hormuz has increased as the United States and Iran pursue diplomatic efforts to end the conflict. [Photo: U.S. Central Command Facebook]

Al Jazeera reported that crude flows through the strategic waterway had recovered significantly, although tanker insurance costs and geopolitical risks continued to hinder a return to normal shipping conditions.

Some estimates put oil and petroleum flows through the strait at nearly 80% of their level before the US-Israeli war with Iran began on Feb. 28.

The increase follows months of sharply reduced traffic through one of the world's most important energy corridors.

Earlier shipping data also showed a significant recovery in vessel transits.

USNI News, citing Lloyd's List Intelligence data, reported that transits more than doubled from May to June, although June traffic remained well below the previous year's level.

The recovery in traffic could reduce some of Iran's leverage over global energy flows as negotiations continue.

However, risks remain. Tankers continue to face security concerns, elevated insurance costs and the possibility of attacks or disruptions.

Iran's ability to control or restrict passage through the strait remains an important issue in negotiations, particularly because the waterway carries a substantial share of global oil and liquefied natural gas shipments.