Navigating the Tides: Shifts in Middle Eastern Oil Transit

A significant drop in tanker crossings through the Strait of Hormuz has coincided with increased geopolitical tensions and a rise in oil prices to $100 per barrel. Meanwhile, tanker traffic at the Bab el-Mandeb strait saw an increase, with notable rerouting through the Suez Canal as shipping firms adjust strategies.

The number of tankers crossing the Strait of Hormuz dipped to just one on Thursday, marking the lowest point since May 7. This shift comes amidst rising tensions in the Middle East and oil prices escalating back to $100 per barrel, as outlined by analytics firm Kpler.

The very large crude carrier New Giant, carrying 2 million barrels of Iraqi Basrah crude, exited the strait on Thursday. It remains on course to reach China's Rizhao port by mid-August, with reports showing no new tankers entering the Strait of Hormuz on July 23.

Conversely, the Bab el-Mandeb strait observed an increase in activity, with 32 tankers crossing on July 23, up from 26 the previous day. This included a mix of ships heading into the Red Sea and those exiting towards the Gulf of Aden, indicating a strategic shift in regional trade routes.