The Strait of Hormuz remained effectively closed to most commercial traffic on Wednesday, August 12, while a fatal Houthi attack in the Bab al-Mandeb Strait placed further pressure on shipping routes serving the Middle East, according to media reports.
Iran has stated that the Strait of Hormuz will remain closed until the US meets its conditions. These include ending the US naval blockade of Iranian ports, lifting sanctions, releasing Iranian assets and paying compensation for damage caused during the conflict.
Iran and Oman discuss new maritime corridor
Iran and Oman have reached an understanding on the coordinates of a proposed maritime corridor through the strait. However, Iranian officials have said that an agreement with Oman alone would not lead to the reopening of the waterway.
Iranian Foreign Minister Abbas Araqchi said Tehran and Muscat were close to reaching an agreement on a new shipping route. According to Araqchi, the previous traffic separation arrangement is no longer acceptable to Iran, while technical and legal issues concerning a permanent route remain under discussion.
The proposed arrangement would reportedly place vessels entering the Gulf under Iranian supervision, while outbound traffic would come under Omani oversight. The US has opposed an agreement that would give Tehran authority over access to an international waterway.
Hormuz vessel traffic remains sharply below 2025 levels
Vessel movements through the Strait of Hormuz remain far below previous levels. The Joint Maritime Information Center (JMIC) said 40 US-facilitated transits were recorded between August 6 and August 8. On August 8, six eastbound and two westbound cargo vessels crossed the strait, along with two tankers. By comparison, approximately 138 vessels per day passed through the Strait of Hormuz on average in 2025.
JMIC recorded 84 maritime security incidents between March 1 and August 10, with commercial vessels continuing to face projectile attacks, drifting or uncharted mines and interference with satellite navigation signals.
ADNOC-affiliated tanker struck by missile
On August 8, the United Arab Emirates said a tanker affiliated with state-owned ADNOC was struck by a missile while crossing the Strait of Hormuz. The crew managed to extinguish the resulting fire, and the tanker subsequently completed its voyage to Fujairah. No injuries were reported.
The security situation escalated again on August 11 when US forces fired on the Panama-flagged Vela Nova in the Gulf of Oman. According to the US military, the container ship ignored repeated warnings and attempted to break the naval blockade of Iranian ports. A fire aboard the vessel was extinguished. The vessel's cargo has not been publicly identified, it had not been confirmed whether the ship was carrying goods to or from Iran.
Fatal Houthi attack increases Bab al-Mandeb risks
Meanwhile, security risks increased in the Bab al-Mandeb Strait on August 11 when Yemen's Iran-aligned Houthi movement attacked the Egyptian-owned, Tanzania-flagged Tihamah, according to Yemen's internationally recognized government. Yemen's Transport Ministry said the Houthis fired three ballistic missiles at the commercial cargo vessel, causing a fire and significant damage.
The Houthis had not officially claimed responsibility for the attack at the time of the initial report. However, the Houthi-run Saba news agency separately reported that the group had attacked a Saudi vessel carrying military equipment in Bab al-Mandeb without identifying the ship. As SteelOrbis reported previously, the Houthis declared a naval blockade against Saudi Arabia in the Red Sea in July. Average daily traffic through Bab al-Mandeb subsequently fell to 32 vessels last week, compared with approximately 50 vessels per day before the blockade.
Hormuz disruption restricts Iranian bulk billet availability
Renewed problems in the Strait of Hormuz have also restricted the availability of bulk billet cargoes from Iran. As SteelOrbis reported last week, bulk cargo availability from Iran has been limited as no fresh lots are currently on the water due to the situation in the Strait of Hormuz.
Meanwhile, Iran's parliament is reviewing legislation that would allow authorities to prohibit vessels linked to the US, Israel and other countries designated as hostile from using the strait. The proposed legislation would cover military vessels as well as civilian cargoes accused of supporting Israel. Violations could result in fines equivalent to as much as 20 percent of the cargo's value.
Oil prices increased on August 12 amid doubts that a maritime agreement was imminent. Brent crude rose 0.6 percent to $89.49/barrel, while West Texas Intermediate futures increased 0.6 percent to $83.67/barrel.
