Singapore-Flagged Ship Sinks in Hormuz, but Others Keep Crossing the Route

The Singapore-flagged container ship GFS Pride sank in the Strait of Hormuz after being hit by a projectile and catching fire. The same week, another vessel under the same flag, the GFS Giselle, was damaged. The crews of both ships were reported safe.

Traffic through the strait thinned out. Maritime tracking data shows 131 transits in the week ended October 14, down from 176 the previous week. The numbers, however, do not allow the drop to be attributed only to the two most recent attacks.

Maritime analysts believe shipping will continue despite the higher risk. Major container lines largely avoid the area, but strong demand for oil, particularly from Asia, keeps tankers coming. Some operators may accept paying an extra cost to get through.

Tracking data suggests the attacks demonstrate Iran's continued capacity to threaten commercial shipping, with risks that extend beyond oil and gas. For market watchers, the strait is one of the world's most important maritime passages. More risk in that passage tends to raise global risk aversion, with a possible effect on the dollar and on assets such as Bitcoin.