Iranian Attacks Reduce Traffic in Strait of Hormuz; Southern Route Usage Low

The U.S. military insisted that the Strait of Hormuz remains open for commercial traffic despite Iranian aggression, which has involved over 30 attacks on vessels since the war began, according to the U.S. military's Central Command. Despite the U.S. urging ships to use a southern route near Oman's coast, maritime intelligence reported that most non-Iranian merchant traffic continued to favor the northern, Iranian-designated corridor. Between July 13 and 19, only two ships used the U.S.-backed southern route, and both had turned off their AIS broadcast systems.

Iranian threats and attacks have caused commercial traffic in the Strait of Hormuz to fall to a three-week low, according to the Joint Maritime Information Center in Bahrain. The reduced flow of commercial vessels and the ongoing risk in the vital waterway introduce supply risk premiums for crude oil and increase maritime insurance costs.

An attack occurred off the coast of Oman, leading Iran to threaten vessels and prompting Washington to seek alternative passage.