Ceasefire Signs in US-Iran, China-South Korean Oil Tankers Leave Strait of Hormuz

Reuters cited shipping data showing that two Chinese oil tankers left the Strait of Hormuz on Wednesday, carrying a total of about 4 million barrels of crude oil. These two crude oil tankers are among the few supertankers carrying Iraqi crude oil to leave this route this month. At the same time, a South Korean oil tanker loaded with Kuwaiti crude oil is leaving the strait under Iranian coordination. According to South Korea's The Herald, this tanker is one of the 26 Korea-related vessels currently in or near this waterway.

S&P Global Commodity shipping data shows that as of May 18th, only 8 oil tankers carrying 15 million barrels of crude oil have passed through the Strait of Hormuz this month. The resumption of navigation in this key passageway echoes the optimistic statements from the U.S. government. U.S. President Trump said on Tuesday that the war would soon come to an end, after which oil prices will drop significantly.

Vice President JD Vance, when discussing the progress of negotiations with Tehran, stated that the conflict was not a protracted war. JD Vance also reiterated that Iran must not possess nuclear weapons. As Trump and JD Vance signal the possibility of the U.S.-Iran war potentially ending soon, the market is closely watching the latest trends in energy supply and geopolitical risks in the region.