Hormuz shipping rebounds to Asia, Latam

Crude oil and liquefied petroleum gas tankers are increasingly navigating the Strait of Hormuz once again, with destinations spanning Asian ports—particularly in China and India—along with renewed activity in Latin American and Gulf region harbors. The recovery follows a near-total collapse of maritime traffic after the United States and Israel launched joint military strikes on Iran on Feb. 28.

According to UN Conference on Trade and Development (UNCTAD) data, an average of 129 vessels crossed the strait daily between Feb. 1 and 27, the day before the attacks. That figure plummeted to just nine per day during March 1–31—a staggering 95 percent decline, according to MarineTraffic data. Since March 15, transiting vessels have primarily followed a corridor established within Iranian territorial waters, a arrangement that reportedly allows Tehran to enforce controls on commercial shipping.

Iran's strict documentation requirements

An industry official told Anadolu that Iran now demands a comprehensive set of documents from any vessel granted passage, including the International Maritime Organization (IMO) number, ownership details, cargo information, destination, and a complete crew list. The Iranian Revolutionary Guard Corps (IRGC) also conducts sanctions screening and cargo compliance checks, focusing primarily on oil shipments. Ship operators must contact IRGC-approved intermediaries before proceeding. Some tanker and container operators have resorted to making payments in Chinese yuan as part of the passage arrangements.

Diplomatic negotiations and fake identifications

China, Pakistan, India, and Thailand have successfully secured passage through diplomatic negotiations with Tehran. Iran reportedly permits 20 vessels flying the Pakistani flag to transit at a rate of two per day. Data from Lloyd's List Intelligence shows that of 212 vessels transiting the strait, approximately 24 percent were linked to Iran, 16 percent to Greece, and 10 percent to China.

Many vessels broadcast false automatic identification system (AIS) codes to indicate safe passage, including labels such as "Santos food for Iran" or claiming Chinese ownership. A significant portion of the traffic consists of commercial vessels on sanctions lists—often called the shadow fleet—primarily transporting Iranian oil to Asian markets.

Latin American food corridor to Iran

Since the war began, Iran's Bandar Imam Khomeini Port has become the busiest in the Middle East. Cargo ships carrying food from Brazil and Argentina arrive regularly, including the Panama-flagged LB Energy from Brazil's Rio Grande Port and the Marshall Islands-flagged Ceci from Argentina's San Lorenzo Port—both broadcasting "food for Iran" identifications. Meanwhile, the Malta-flagged AYA is sailing empty from Bandar Imam Khomeini toward Brazil's Santos Port.

Energy trade flows to Asia

Nearly all crude oil tankers bound for China carry Iranian oil, listing their destination simply as "China" without a specific port. The Cook Islands-flagged tanker KYLO, after passing through the strait into the Gulf of Oman, similarly listed only "China" as its destination. Indian BW LPG firm's tankers BW Elm and BW Tyr have transported LPG from Qatar's Ras Laffan terminal to India's Ennore Port. On Thursday, the first LNG tanker—the Panama-flagged SOHAR—transited the strait since the war began, departing half-loaded from the UAE's Fateh oil field.