Market activity was generally absent today as participants across regions waited for Indian importer IPL to finalise its 15 April tender by issuing letters of intent (LOls). Offers are valid until 23 April.
Uncertainty was exacerbated by conflicting developments around the Strait of Hormuz. On 17 April, reports that the strait had reopened briefly encouraged some vessel movements, but this was followed by renewed escalation in US-Iran tensions over the weekend, including the US seizure of an Iranian vessel in the Arabian Sea. Iran subsequently reiterated its control over commercial transit through the strait.
Vessel-tracking data show at least 21 vessels attempted to exit the Gulf during the short reopening, but two vessels were attacked on Saturday, 18 April, according to Uk Maritime Trade Operations (UKMTO). Following the incidents, traffic through the strait slowed significantly from around 17:00 GMT on Saturday.
While neither side has fully shut the door on negotiations, the industry players – particularly in India – are closely monitoring the tone of developments in the coming days.
