Hormuz Traffic Halves as Diesel Cracks Blow Past Crude
Energy prices finally caught up with the renewed escalation around the Strait of Hormuz. August WTI jumped 9.0% to $77.84/bbl, Brent gained 8.9% to $82.76 and ICE gasoil surged $90.50 to $1,098.50/mt. The renewed U.S. naval blockade applies to maritime traffic entering or leaving Iranian ports, rather than every vessel crossing Hormuz, but commercial shipping has already turned defensive. Kpler recorded a 52% week-on-week decline in confirmed crossings from July 10 through July 12, with traffic shifting toward Iranian and dark routes while recognized IMO and Omani corridors almost disappeared. Saudi-Houthi hostilities have also returned after a long lull, reopening risk around Bab al-Mandab. Hormuz is not formally closed to all traffic, but normal commercial transit has already been cut roughly in half.
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