Strait of Hormuz Springs Back to Life as US-Iran Truce Eases Tensions

The Strait of Hormuz, the world's most critical energy corridor, is becoming active again after the US and Iran signed a temporary peace agreement, putting an end to months of war-like tensions. International media reported that nearly 80 million barrels of crude oil are currently waiting at the gateway to the Persian Gulf to enter the global market.

Around 40 large oil tankers carrying cargo free of international sanctions are presently stationed in the Persian Gulf awaiting clearance to sail. Since this figure does not include Iranian oil or smaller vessels, the actual volume of oil poised to flow into the market is estimated to be considerably higher.

Under the new agreement signed between the US and Iran, both countries have agreed to restore shipping traffic through the Strait of Hormuz. This has revived the global energy market, which had remained stalled for months.

With the deal now in effect, international oil prices have registered a decline. Previously, more than 15 million barrels of crude oil were shipped daily to Asian countries through the Strait of Hormuz.

At present, 21 large oil tankers have already set course for Asian destinations. Of these, five are headed to China, while another five are moving toward ship-to-ship transfer hubs in Malaysia and Singapore. Reports also indicate that three Saudi Arabian super-tankers have resumed their voyage through the Gulf of Oman.