Oil tanker traffic through the Strait of Hormuz came to a near standstill on Thursday and slowed on Friday following renewed hostilities between the U.S. and Iran. The decline in ships, many carrying oil and gas, follows airstrikes by the U.S. on Iran for a second straight day, triggering retaliation from Tehran and leaving a fragile truce looking increasingly shaky.
The ongoing row between the two nations appears to center on the use of an Omani shipping corridor, as the U.S. and Iran exchange hostilities and argue over who maintains control of passage through the critical waterway.
Prior to this week's attacks, daily tanker traffic had reached its highest level since the war began, averaging 40 ships transiting the strait. While Brent crude holds steady despite the plunge in traffic, oil has rallied more than 7% this week as investors worry that exports through the waterway could plunge.