Strait of Hormuz traffic declines

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Golden Finance reported that on June 29, after two vessels were attacked, the market once again raised doubts about shipowners’ ability and willingness to transit the Strait of Hormuz, keeping commercial shipping volume through the waterway at a relatively low level. Vessel tracking data shows that during the weekend, only a small number of ships completed open passage. Among them, two very large crude carriers (VLCCs) entered the Persian Gulf empty, while a container ship flying the French flag and two fully loaded tankers departed this inland sea area. Although the observed transit volume declined over the weekend, it was still higher than for most of the time during the U.S.-Iran war. Since Washington and Tehran announced an interim arrangement earlier this month to reopen the strait, the trend of more shipowners being willing to pass through the Strait of Hormuz has further strengthened. Global investors, shipowners, and insurance institutions are closely watching developments in this vital chokepoint, viewing it as a key indicator of whether the peace agreement can hold and whether a severely disrupted supply chain can return to normal. After the two vessel attacks, the United States and Iran carried out tit-for-tat strikes over the weekend, testing their fragile ceasefire, but both sides have since agreed to pause attacks ahead of the resumption of talks this week.
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