Oil prices dip as tanker traffic through Strait of Hormuz rises amid US-Iran talks

Tanker traffic through the Strait of Hormuz increased over the weekend, reaching the highest level since the conflict began in late February, according to shipping-tracker Kpler. A total of 109 vessels transited the waterway from Saturday to Monday, reflecting progress in U.S.–Iran negotiations aimed at reopening the key oil route.

The two sides have agreed to allow oil shipments while the United States maintains a naval presence and Iran’s sea mines remain a concern. The strait’s central channel has not yet been cleared of mines, so vessels are using either a northern channel in Iranian territorial waters or a southern channel in Omani waters. The U.S. Navy oversees transits on the southern route, and Iran has recently demanded that ships use the northern route.

Despite the uptick, traffic remains below the pre-conflict average of more than 130 ships per day, and a backlog of hundreds of vessels awaiting passage persists, according to the International Maritime Organization.

The Joint Maritime Information Center, a U.S.-led security body based in Bahrain, lowered the regional threat level to moderate on June 18 after the agreement to open the waterway. It warned that confirmed mines still exist and advised vessels to use the southern route, which has been cleared, while expecting continued naval presence and possible congestion.

The rise in shipments has helped ease oil prices that had surged above $100 a barrel earlier in the conflict. Brent crude traded around $75 a barrel on Tuesday, down about 0.3% on the day and more than 4.5% over the previous five days. U.S. West Texas Intermediate was about $73 a barrel, falling roughly 0.8% on the day and 7.7% over the same period.

"Mariners should be advised of the existence of mines and expect naval presence as clearance operations continue," the JMIC said in its announcement.