Ship-to-ship transfer activity near the Strait of Hormuz has increased sharply, while two Saudi oil tankers have transited the Bab el-Mandeb Strait after several days of limited traffic. However, geopolitical disputes in the Middle East remain unresolved, and shipowners continue to maintain strict risk controls. Based on the latest shipping lane monitoring data from August 2026, this article reviews changes affecting Middle East routes and the recommended response for freight forwarders, together with an assessment of current energy shipping risks.

Recent monitoring data from the Middle East energy shipping market indicates limited improvement along the region’s two main energy corridors. Traffic through the Strait of Hormuz and the Bab el-Mandeb Strait had previously continued to decline amid geopolitical conflict, attacks by the Houthis, and disputes over navigation arrangements in the Strait of Hormuz.

As crude oil transfer activity and tanker traffic gradually recover, the latest tanker movements through the Bab el-Mandeb Strait have drawn continued market attention. However, the industry broadly warns that the improvement remains fragile. Shipping risks in the Middle East have not been resolved, shipowners continue to apply strict risk-control standards on regional routes, and trading companies and freight forwarders should remain alert to schedule delays and fluctuations in war-risk insurance rates.

Key Highlights

• Traffic improves: Ship-to-ship transfer activity outside the Strait of Hormuz has increased significantly, while crude oil export volumes continue to recover.

• Red Sea transit: Two Saudi crude oil tankers successfully transited the Bab el-Mandeb Strait, indicating a temporary improvement on Red Sea routes.

• Limited recovery: Overall traffic has not returned to normal, while shipping companies continue to operate cautiously and maintain strict risk controls.

• Continued uncertainty: Geopolitical disputes in the Middle East remain unresolved, and long-term uncertainty over navigation through both energy corridors persists.

Strait of Hormuz: Ship-to-Ship Transfer Activity Increases

According to monitoring data reported by Bloomberg on July 31, crude oil transfer activity near the Strait of Hormuz, which had previously declined, has increased significantly.

To reduce the risks associated with direct voyages, Middle Eastern oil-producing countries have been using ship-to-ship transfers off the Port of Sohar in Oman, allowing crude oil to be transferred between vessels before onward shipment from the Persian Gulf.

Satellite data shows that daily transfer activity in the area has increased sharply compared with late July. Transfer volumes handled by major tanker operators have nearly returned to levels recorded before the escalation of the conflict. Ship-to-ship transfers have become one of the more stable methods currently used to move crude oil out of the region.

Bab el-Mandeb Strait: Two Tankers Resume Transit

On August 3, Red Sea routes also showed signs of temporary improvement. Reuters reported that two Saudi crude oil tankers had successfully transited the Bab el-Mandeb Strait and exited the Red Sea.

One was a Suezmax tanker carrying approximately one million barrels of Saudi crude oil. The other was a very large crude carrier (VLCC), with a maximum capacity of approximately two million barrels, sailing fully laden to the Port of Sikka in India.

However, Kpler shipping data confirms that the current frequency of merchant vessel transits through the Bab el-Mandeb Strait remains well below normal levels. Market activity remains limited, and a full resumption of traffic has not yet taken place.

Multiple Shipping Risks Remain

The current improvement in the Strait of Hormuz and on Red Sea routes remains limited and temporary. Risk-avoidance measures have become standard practice among shipping companies.

In response to the complex regional situation, many shipowners have reduced transit frequency, restricted or switched off AIS transmissions during voyages, adjusted long-haul routes, and continued to increase war-risk insurance rates. Overall risk-control standards remain strict.

Market attention has shifted from whether shipping lanes will be closed to the sustainability of routine transit operations, insurance underwriting policies, and whether shipowners are willing to resume services on a larger scale.

Geopolitical Disputes Remain Unresolved

The underlying geopolitical disputes affecting the two energy corridors remain unresolved, leaving continued uncertainty over long-term navigation.

Iran has rejected Oman’s proposal for joint management of the Strait of Hormuz, and no agreement has been reached on navigation arrangements in the strait.

In the Red Sea, the Houthis continue to enforce restrictions targeting Saudi shipping. This has reduced shipowners’ willingness to resume services and makes a full reopening of regional routes in the short term unlikely. Shipping risks in the region are therefore expected to persist.

Industry Summary

The current signs of resumed traffic represent only a limited and fragile improvement. The underlying risks arising from maritime attacks and geopolitical confrontation in the Middle East remain, and any change in the regional situation could reverse the current transit conditions.

This temporary improvement should be viewed as a market adjustment period rather than a full recovery of shipping routes. Freight forwarders and trading companies should shorten booking cycles, monitor shipping lane developments closely, adjust transportation arrangements for energy cargoes as conditions change, and prepare for schedule delays, higher insurance rates, and route changes to maintain stable supply chain operations.

Sources

gCaptain, Reuters, Bloomberg, and Kpler 

Timeliness Note

As of early August 2026, there have been no reports of a negative reversal in the transit conditions described above. Any major subsequent changes should be assessed based on the latest available information.

Disclaimer

The information in this article is sourced from publicly available channels and is provided solely for industry reference. It does not constitute commercial advice or logistics operating guidance.