Shipping traffic through the Strait of Hormuz plunged to just seven commodity vessels on Thursday, down from 14 the previous day, as the diplomatic impasse between Iran, Oman, and the United States continues to choke one of the world’s most critical energy corridors.
The latest Kpler tracking data shows that four vessels entered the Gulf and three exited, with none involving a very large crude carrier or liquefied natural gas tanker. One very large gas carrier carrying propane and butane did exit through the Iranian route, marking a rare exception in an otherwise near-empty waterway that normally handles more than 20 million barrels of oil per day.
Iran and Oman Hold Fresh Talks
The shipping collapse came as Iranian and Omani foreign ministers held a phone call to discuss creating conditions for resuming dialogue and negotiations. Omani Foreign Minister Badr Al-Busaidi said lasting security in the waterway required permanent peace in the region and rejected further escalation, according to Oman’s state news agency.
The two countries have been conducting bilateral negotiations on managing the Strait of Hormuz, but their talks remain at odds with Washington’s position. Iran insists on controlling a single shipping route entirely within its territorial waters, while Oman’s Gulf-backed proposal for a 50-50 shared arrangement was rejected by Tehran. The US, for its part, has promoted a southern lane along the coast of Oman and has maintained a naval blockade since the conflict began.
“The issue of Iran and Oman holding talks to reach a mechanism that safeguards our interests is not new and has been under discussion for a long time,” said Iranian Foreign Ministry spokesman Esmaeil Baqaei, according to the semi-official Fars news agency.
Oil Exports Collapse, Incidents Mount
The traffic figures underscore the scale of disruption to global energy flows. Iranian oil exports have fallen from a 2025 average of approximately 1.4 million barrels per day to roughly 534,000 barrels per day in August, according to industry data. Chinese refiners, the primary buyers of Iranian crude, are increasingly turning to alternative sources as the blockade tightens.
The International Maritime Organization’s latest tally for the Middle East region reached 66 confirmed maritime incidents and 18 seafarer fatalities as of August 19, reflecting the danger facing commercial vessels transiting the area. Five of the eight vessels that entered the waterway on a recent day had switched off their Automatic Identification Systems, according to maritime intelligence company Windward.
The disruption is compounding pressure on global oil markets even as OPEC+ has raised output targets by 188,000 barrels per day for August. Production quota increases on paper have failed to translate into actual export increases while Hormuz vessel crossings remain in single digits. “Hormuz is still a problem, but it is no longer the only story,” said analyst Flynn in a morning market note. “Pipelines, shuttles, US shale, a recovering Venezuela, and an unconstrained UAE are all adding barrels.”
The situation has pushed Brent crude to hold near $94 per barrel, while Saudi Arabia has responded by cutting its August Arab Light official selling price for Asia by $11 per barrel, the steepest single-month reduction in over two decades. The 60-day diplomatic framework agreed in late June means the window between now and late August represents the decisive period for whether the Hormuz recovery acquires durable foundations or remains fragile.
Sources: Kpler; Ship Universe; Reuters; Arab News
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