Traffic jam at the Strait of Hormuz

Tankers and cargo ships at anchor near the Strait of Hormuz, awaiting permission from Iranian authorities to transit the strait. The source did not specify is these are inbound or outbound vessels. Some 20% of the world’s petroleum passes through the Strait of Hormuz en route to the wide, wide world, and the interruption of that trade has caused a dramatic increase in the price of oil and in every other commodity and service connected to the price of energy. The U.S. administration has been criticized for not planning for this situation and has been unsuccessful in obtaining support from other nations to keep the strait open by military means. The U.S. president urged ship captains to show courage and transit the strait, regardless of the threat, but courage will not change the fact that maritime insurance brokers will not cover ships transiting the Strait of Hormuz under present conditions.

Read more