Why Hormuz Traffic Stays Frozen and Iran Still Holds Leverage Over Oil
Despite the US naval blockade and Trump's insistence the Strait of Hormuz is 'open and operating,' vessel crossings remain a trickle because shipowners won't risk Iranian attacks. Oil is increasingly bypassing the strait or moving covertly under US protection, blunting but not eliminating Tehran's chokehold.
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Daily maritime traffic through the Strait of Hormuz has collapsed from over one hundred to under thirteen ships.
Insurance market seizures and unsustainable premiums have created a virtual wall for commercial shipping fleets.
Daily oil flow through the strait plummeted from eighteen million barrels to just two million by August twenty twenty-six.
Existing pipeline infrastructure lacks the physical capacity and pressure to replace lost maritime tanker routes.
Some vessel operators are reportedly paying informal tolls to the Revolutionary Guard to bypass the blockade.
Rerouting ships around the Cape of Good Hope is driving up global fuel, labor, and inventory costs.
- 01Intro1 min
- 02The Ghost Waterway2 min
- 03The Economics of Fear3 min
- 04The Crude Reality3 min
- 05The Global Risk Tax2 min
- 06Outro1 min
- Hormuz traffic slows as uncertainty over waterway persists | Reuters
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