The Strait of Hormuz, one of the world’s main energy supply routes, has become deadlocked after the US-Israeli airstrike on Iran. According to shipping data, hundreds of fuel oil and liquefied natural gas (LNG) vessels are currently stranded at the two entrances to this important waterway.
At least 150 large tankers are now anchored in the open sea outside the Strait of Hormuz, Reuters reported, based on data from the ship tracking platform Marine Traffic. Among them, the number of vessels carrying crude oil and LNG is high. Apart from this, dozens of ships are standing still on the other side of the strait.
According to shipping analysts, the situation comes as the entire region is in the grip of renewed war following the US-Israeli attack on Iran on Saturday morning. Most of the ships are now at a safe distance off the coasts of Iraq, Saudi Arabia and Qatar.
About 20 percent of the world’s total fuel oil demand and one-fifth of the total LNG supply are transported through this narrow waterway. Global supply chains are under serious threat as shipping stops at these ‘chokepoints’ in the strait.
If this stalemate persists, it is feared that the price of crude oil in the international market may skyrocket. The vessels are currently lying in what are described as ‘floating mountains of oil’.
Meanwhile, several leading oil companies and trading houses have already announced the suspension of shipping through the Strait of Hormuz for security reasons. Exports from LNG giants like Qatar and major oil producers like Saudi Arabia are now on the verge of a complete shutdown, shipping data shows. As a result of this impasse, it is feared that not only fuel, but also the cost of power generation and transportation of goods will increase around the world.
