Strait of Hormuz Shipping Grinds to a Halt Amid Rising Tensions

A dramatic slowdown in shipping traffic has been observed in the Strait of Hormuz, a vital waterway for global oil and gas supplies, following Iran's announcement that it is closing the strait due to Israel's strikes on Lebanon. According to data from maritime intelligence company Windward, the number of vessels crossing the strait plummeted to just 12 on Sunday, down from 35 the previous day. Furthermore, five of the eight vessels that did enter the strait had their Automatic Identification Systems turned off, raising concerns about the transparency of maritime traffic in the region. This development comes despite recent signs of recovery in shipping traffic, with 25 vessels transiting the strait on Thursday, the highest number since mid-April. The Iranian Islamic Revolutionary Guard Corps cited Israeli 'crimes' in Lebanon and the failure of the US to maintain a ceasefire as the reason for shutting down the strait. However, US Central Command disputed this claim, stating that safe passage through the waterway remained intact, with 55 merchant ships transiting on Saturday. The discrepancy between these figures has sparked confusion, and the situation remains uncertain. Meanwhile, US and Iranian negotiators held critical talks in Switzerland on Sunday, discussing the safe passage of ships through the strait and establishing a mechanism to ensure its stability. Despite the renewed tensions, oil prices have decreased, with Brent crude down 0.9 percent on Monday morning in Asia. The impact of this situation on global markets is being closely monitored, with Asian stock markets showing mixed results, including gains in Japan, South Korea, and Taiwan, but a decline in Hong Kong.