Frontline sees Hormuz tanker traffic rising fast if US-Iran deal holds
Why it matters: Only 5 to 10 ships now cross the strait daily, down from 130 to 140 before the closure.
Frontline expects commercial tanker traffic through the Strait of Hormuz to rebound quickly if the United States and Iran reach a stable agreement that improves shipping security, CEO Lars Barstad said. Barstad said five of Frontline's tankers are stuck in the Persian Gulf because of the closure, and traffic remains far below normal levels. Before the disruption, about 130 to 140 vessels crossed the strait each day; now only about 5 to 10 do, he said. Barstad also said roughly 10% of the world's very large crude carriers are stranded in the Gulf loaded with oil, with each able to carry about 2 million barrels. He said Gulf exporters are eager to move crude once the route reopens.