Shipping in the Strait of Hormuz has declined sharply amid risks of attacks and rising insurance costs, despite U.S. President Donald Trump’s statements about Washington’s full control over this critical waterway. The Wall Street Journal reported on August 12 that vessel tracking data shows only 14 ships crossed the strait on Tuesday — down from more than 130 per day before recent conflicts.
The report states that 11 of those 14 vessels chose routes controlled by Iran. In July, traffic dropped to 26 crossings per day and in June to 33.
According to The Wall Street Journal, Iran has suppressed traffic through the energy hub with a relatively small military force, using real physical risks to maintain dominance. Kpler data indicates that in August, half of ships took the Iranian route while others turned off lighthouses to conceal movements — only two of 166 crossings used the U.S.-supported Oman route.
Insurance costs for war-related transit through the strait have increased from 0.25% to 10% of a vessel’s cost, translating into an additional $3 million to $10 million per large tanker.
