Shipping in the Strait of Hormuz has nearly come to a standstill, Greek shipowners report two oil tankers attacked.

As the conflict between the US and Iran escalates and commercial vessels are repeatedly attacked, maritime activity in the Strait of Hormuz—the world's most important energy transportation chokepoint—is nearing a standstill.

Bloomberg reported on July 20 that Iranian attacks on oil tankers and the US’s ongoing escalation of military operations have caused commercial shipping in the Strait of Hormuz to almost grind to a halt. On that day, two ships managed by Dynacom Tankers, owned by Greek shipowner George Prokopiou, were attacked, signaling that shipping companies and crew are further avoiding this critical waterway.

Meanwhile, Reuters, citing ship tracking data, reported that the passage of large oil tankers through the Strait of Hormuz has dropped from an average of about eight per day in early July to only about two per day; activities previously sustained by ship-to-ship transfers for oil exports have also noticeably slowed down.

Two Dynacom Tankers Attacked: Even the "Last Brave Ones" in Shipping Hit

According to Bloomberg, the attacked vessels include a super-large tanker named Acheloos and a smaller fuel tanker. Dynacom Tankers stated that the two ships managed by the company were attacked near the strait.

Reuters reported that one of the vessels, the Malta-flagged Panamax tanker Kavomaleas, was hit by two pieces of unidentified ammunition, causing a fire in the engine room, forcing the crew to evacuate. The UK Maritime Trade Operations (UKMTO) said the crew had been rescued by nearby tugs, but the vessel remained adrift and continued to burn.

Dynacom had previously been considered one of the few major ship owners still trying to maintain shipping through the Strait of Hormuz. With the company's ships now targeted, the market worries that other owners’ willingness to risk passage through the strait will further decrease.

US maritime authorities still warn that commercial vessels in the Persian Gulf, the Strait of Hormuz, and the Gulf of Oman face heightened risks, with threats from Iran including not only boarding and interception but also missile attacks, armed drones, and unmanned surface vessel assaults.

From "Avoiding the Strait" to Transfer Activity Slowing Down, Alternative Routes Under Pressure

With shipping in the Strait of Hormuz disrupted, some energy trades have previously tried to sustain exports through ship-to-ship (STS) transfers outside the strait, avoiding direct passage by large tankers through the most dangerous channel.

But the latest Reuters analysis shows that even this alternative method is cooling significantly. Satellite images on July 18 showed only one pair of tankers conducting ship-to-ship transfers in the Gulf of Oman, down from three pairs a week earlier. Maritime professionals observed only two to three such transfers recently.

This means the issue is shifting from "whether ships are willing to cross the Strait of Hormuz" to "whether, even by avoiding the strait, energy exports can continue smoothly."

The US had previously assisted some vessels in maintaining energy flows through military guidance and related operations, but after a series of attacks, some shipping companies have begun re-evaluating or even rejecting US military-guided transit routes.

Shipping Data Near "Zero," but Energy Flow Not Completely Interrupted

It should be noted that the near halt in shipping through the Strait of Hormuz does not mean global energy supply has entirely stopped.

Reuters, citing US data, said that current crude oil flow remains at about 14 million barrels daily, roughly two-thirds of pre-conflict levels, including supplies via sea transport and pipelines. However, ship tracking is affected by signal interference and other factors, so actual flows remain uncertain.

Previously, dozens of commercial vessels passed through the Strait of Hormuz each day, making it one of the world’s most important energy transportation routes. As large tanker traffic plummets, the risks to the global energy market have upgraded from “short-term shipping delays” to “persistent supply disruption.”

Notably, risks around the strait are already showing signs of spillover. On July 20, Iran-backed Houthi forces announced a maritime embargo on Saudi Arabia, threatening to further impact another key global energy and trade route—the Red Sea and Bab el-Mandeb Strait.

Brent Oil Tops $90 for First Time in Over a Month as Market Prices In "Long-term Blockade"

With maritime activity nearly stalled and attack frequency rising, the crude oil market is repricing the Strait of Hormuz crisis.

On July 20, Brent crude oil briefly rose above $90 per barrel—the first time since mid-June; US WTI crude prices also closed higher. The market fears that if US-Iran military conflict continues to escalate, the practical capacity for passage through the Strait of Hormuz could drop further, turning supply disruptions from a short-term event into a persistent crisis.

Previously, the market had bet on diplomatic efforts and military escort to restore strait passage. But now, with continued US airstrikes on Iran, Iranian attacks on commercial vessels, and shipowners starting to re-evaluate US-led transit options, the energy market faces a thornier question: Even if the strait is not formally closed in a legal sense, has commercial shipping effectively become impossible?

Based on current vessel activity, the answer is increasingly becoming "yes."

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