Breakthrough in Hormuz? Asian oil tankers ‘moving again’

Three crude oil supertankers bound for East Asia are reportedly attempting to transit the Strait of Hormuz on Wednesday, signaling a possible easing of one of the world’s most dangerous energy chokepoints.

Bloomberg reported that a South Korean-flagged VLCC appears to be making a crossing through the strait — potentially the first successful transit by a South Korean supertanker since the escalation of the US-Israeli conflict with Iran began.

At the same time, Reuters, citing LSEG and Kpler shipping data, reported that two Chinese crude tankers carrying roughly 4 million barrels of oil have already exited the Strait of Hormuz en route to China.

Closely-watched movement

Asian refineries are mostly built for crude oil sourced from the Gulf.

The movement is being closely watched by global markets because the Strait of Hormuz handles nearly 20% of the world’s oil and LNG flows, according to the International Energy Agency (IEA). Any disruption there can send shockwaves through global energy prices, inflation and supply chains.

Analysts say the renewed tanker traffic may reflect growing optimism around backchannel diplomacy after President Donald Trump and Vice President JD Vance suggested progress in talks with Tehran and hinted that the conflict could de-escalate and oil prices could go down “very quickly.”

Shipping intelligence firms note that tanker activity through Hormuz remains far below normal levels.

Yet even limited movement is being interpreted by traders as a sign that energy exports from the Gulf may gradually resume after months of volatility and military risk.

FACT FILE

For Iran itself, virtually all of the country corn imports (its primary feed grain) arrive through Arabian Gulf ports. Iran imports ~30% of its wheat and 80–90% of pharmaceutical raw materials are imported. 

Reports cite that food inflation is already exploding inside Iran, so any easing of the US naval blockade is also good news for consumers inside the Islamic Republic.

US naval blockade

The US side is keeping up the pressure on Iran, even as the IRGC's proxies are staging their own attacks including attempted drone strikes on the Barakah Nuclear Power Plant in the UAE.

Now, following US President Donald Trump's earlier announcement to put a "planned attack" on Tehran on hold after appeals from Qatar, Saudi Arabia and United Arab Emirates (UAE), the US leader stressed that they are "prepared to go forward with a full, large-scale assault" on Iran.