Iran's attack on two Indian tankers in the Strait of Hormuz has drastically reduced market expectations for a return to normal shipping traffic by May 31.
The market for traffic normalization has plummeted to 15% from 40% earlier this week. This sharp decline followed Iran's actions, casting doubt on any swift return to regular transit volumes. Traders are now anticipating extended disruptions.
Concurrently, predictions for crude oil reaching $90 by the end of June have risen to 60%. This surge occurred immediately after the tanker attack, as traders factored in potential supply interruptions through the vital strait.
The attack represents a significant escalation, directly threatening a shipping lane critical for global oil transit. The market for Strait of Hormuz traffic saw no volume in the past 24 hours, with a thin order book making prices highly susceptible to sharp swings from single trades.