Strait of Hormuz shipping grinds to a halt ahead of U.S.-Iran ceasefire expiry - ‘Ceasefire?’ What ceasefire? Didn’t that whole canard end about 2 days after it went into place? CNBC seems to have lost the thread here, but it’s a decent read anyway.
Key Excerpt:
Shipping traffic through the Strait of Hormuz slowed to a halt over the weekend ahead of the expiry date of the 60-day ceasefire between the U.S. and Iran on Monday, with no official negotiations or deal in sight.
Over the weekend, only five cargo ships passed through the critical oil passage on Saturday, according to data from Kpler cited by Reuters, while no ships were registered to pass through the passage on Sunday. This is compared with 31 vessels the previous weekend.
Shipping traffic had already hit a three-month low last week, with a five-day average of 13 vessel transits on Tuesday reflecting the lowest level since May 12, a CNBC analysis of Kpler data found.
Overall, shipping is down 90% since before the war started on February 28, with the Strait of Hormuz carrying about a fifth of the world’s oil, averaging about 130 vessel transits per day.
HSBC shipping expert Parash Jain told CNBC’s Squawk Box Europe Monday morning that investors should understand “chaos is the norm” for the industry and factor it into their base assumptions.
Oil prices inched lower on Monday with international benchmark Brent crude futures down 0.15% to $88.45 per barrel, while U.S. West Texas Intermediate crude declined 0.74% to $81.79.
[End]
I highlight that final paragraph to emphasize a point, which is that events in and around Hormuz appear to have now become completely disconnected with the daily fluctuations in crude oil prices.
What a time this is to be alive.
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