Archive · 7 Aug 2026
Hormuz traffic dwindles as markets watch Iran-Oman talks
The Strait of Hormuz is a narrow sea passage between Iran and Oman that ships use to carry oil around the world.
Lately, far fewer ships have been using it.
This week, 33 ships passed through, compared with 50 the week before.
Before the waterway was closed, about 130 to 140 ships would pass in the same amount of time.
Iran closed the strait after a war involving the United States and Israel began on February 28.
China and India want to buy oil from Iraq that is being sold at a big discount of nearly $30 a barrel.
But ship owners are afraid to sail into the strait, so no ships have been hired.
Iran and Oman are talking about a deal to reopen the waterway, but it is hard because of U.S. sanctions and insurance rules.
Shipping traffic through the Strait of Hormuz fell to 33 vessels from Monday to Thursday this week, down from 50 in the week-ago period.
Only six crude oil tankers have exited the strait this week, with 21 vessels entering so far, mostly via the Iranian route.
Chinese and Indian refiners sought vessels to load discounted crude at Iraq's Basrah Oil Terminal, but no vessels have been fixed as shipowners remain wary.
Iraq's state oil marketer SOMO offered discounts of close to $30 a barrel for Basrah Heavy and Basrah Medium crude loaded in August.
A proposed Iran-Oman deal over ships entering the Gulf is seen as difficult to implement because of U.S. sanctions and restrictive insurance clauses.
- Who
- Shipowners, Chinese and Indian refiners, Iraq's state oil marketer SOMO, and officials in Iran and Oman holding talks.
- What
- Vessel traffic through the Strait of Hormuz has dwindled to 33 ships this week as markets watch Iran-Oman talks on reopening the key waterway.
- When
- Monday to Thursday this week, reported August 7.
- Where
- Strait of Hormuz; Iraq's Basrah Oil Terminal; Bab el-Mandeb strait in the Red Sea.
- Why
- Shipowners are wary of entering the waterway, which Iran closed after the U.S.-Israeli war began on February 28, even as discounted Basrah crude attracts buyers.
Supporters of the Iran-Oman deal
Industry skeptics
Reopening the Strait of Hormuz
Supporters of the Iran-Oman deal
Markets are watching talks between Iran and Oman for signs of progress in reopening the key waterway to shipping.
Industry skeptics
Industry sources say the proposed deal giving Tehran control over ships entering the Gulf is not easily workable due to U.S. sanctions and restrictive insurance clauses on payments.
- Vessels transited this week (Mon-Thu)
- 33
- Vessels transited week-ago period
- 50
- Crude oil tankers exited strait this week
- 6
- Vessels entered strait this week
- 21 (mostly via Iranian route)
- Typical pre-closure transit numbers
- About 130-140 ships
- Basrah Heavy and Basrah Medium discount, August loading
- Close to $30 per barrel
- Waterway closure trigger
- U.S.-Israeli war began February 28
- Bab el-Mandeb transits on Thursday
- 26 (Kpler) vs 28 (LSEG)