Since the renewed fighting, the number of ships transiting the Strait of Hormuz has dropped sharply, and transportation costs have increased.

BlockBeats, July 11: Since fighting between the US and Iran reignited this week, the amount of transit through the Strait of Hormuz has dropped noticeably. According to Kpler data, on Thursday the number of transiting vessels fell from 30 the previous day to 22. On Tuesday local time, after Iran targeted ships in the strait (including damage to a Qatar LNG carrier), clashes between the two sides broke out again. Since the two sides began striking each other on Tuesday, only two LNG vessels have entered the strait, and one has exited.

After a peace agreement between the US and Iran on June 17 to begin negotiations aimed at ending the conflict, transit volume had increased somewhat, reached a peak a few days later, and then a ceasefire was broken. In a customer report on Friday, shipping broker Braemar LNG said that vessel owners were taking a cautious approach and had withdrawn available capacity from the region “until the geopolitical situation becomes clearer.” This move reduced the number of available ships and pushed up transportation costs.