The strait of Hormuz explained in details
The author breaks down the shipping routes, mine threats, and insurance issues in the Strait of Hormuz to explain the recent drop in oil futures prices.
- Large numbers of oil vessels are successfully passing through the safe side channel, maintaining supply.
- The side channel is currently toll-free, reducing transit costs and keeping oil flowing despite the conflict.
Ok with alot of info about the strait , we still don't know wtf is happening.
The news are conflicting, contradictory and possibly built in a way to make us dumber ( as always)
And nowadays it seems the news headlines are made to make the AI algorithms even dumber. (New)
Anyway, I wanted to write this to help wsb fellows make a better trade at the casino.
I spent some time doing research. Which I'm sure you can do the same ,only if you ask the right questions, and use reasoning.
Anyway about the strait. Is it open ? No
Are ships passing through? Yes!
Is the number of traffic equal / higher than pre war ? Yes
Is the volume of oil or any cargo the same pre war? No where near.
Are there mines in the strait? Yes
So how are vessels passing through? Keep reading
How many routes are in that gulf conflict now ? Currently 3 different routes.
Are all three routes safe / functional and toll free ?No
What are these routes in simple words ?
1) The middle channel (hazaradous) . The deepest channel and the only channel where mega cargo and oil vessels can be used. The most cost efficient for all cargo and energy trades.
Since the war has started and Currently, full of mines and a no-go-zone-by any cargo vessel .
If any civilian cargo vessel passes through and got mined, attacked . Then the insurance is not liable and won't pay a penny to any of those affected.
2)The side channel (safe and currently toll free . Subject to intermittent closures & reopening and so on) depending of the pre set war game and hype.
This channel has been left safe from mines since day one of war. This is the channel where the dark fleet used to pass ,and current oil vessels are passing through. This passage is currently free of toll for two months up until the MOU between USA and Iran is finalised / renewed.
large numbers of vessels of oil and cargo in the news for the last 10 days ,that have hammered the price of oil futures down. (Note large numbers of vessels,not a large volume of oil)
This is where the headlines are fooling us and the AI that runs the market.
These small to medium vessels maybe 200 of them have passed the last two days alone. The capacity of these small / medium vessels are a fraction ,of what a mega oil taker can carry on one single vessel.
3) The UN Oman route
This channel came out of the blue. It was basically the UN adding another alternative shipping route through Oman. In order to let the mega carriers pass through, by the time the USA & Iran reach final agreement.
This operation by the UN is now at a halt after Iran strikes tankers passing through this route.
So please be careful when you check stupid websites that were built a month ago about the state of strait of Hormuz
These are all scams and inaccurate data.
Look for much credible resources.

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