The number of vessels navigating the critically important Strait of Hormuz appears to be declining, according to the world’s largest shipping association, amid deepening fears of a widening conflict in the Middle East.

Jakob Larsen, head of security at Bimco, which represents global shipowners, said all shipowners were closely monitoring developments in the region and some have already paused transits in the Strait of Hormuz due to the deterioration of the security situation.

His comments come shortly after the U.S. on Saturday attacked three major Iranian nuclear enrichment facilities, a massive escalation in its involvement with Israel’s effort to cripple Tehran’s nuclear program.

Iran has condemned the attack, saying it reserves all options to defend its sovereignty and people.

“Before the US attack, the impact on shipping patterns was limited,” Bimco’s Larsen said.

“Now, after the US attack, we have indications that the number of ships passing is reducing. If we begin to see Iranian attacks on shipping, it will most likely further reduce the number of ships transiting through the [Strait of Hormuz],” he added.

The Strait of Hormuz, which connects the Persian Gulf to the Arabian Sea, is recognized as one of the world’s most important oil chokepoints.

In 2024 and the first quarter of 2025, for instance, flows through the narrow waterway made up roughly 20% of global oil and petroleum product consumption, according to the U.S. Energy Information Administration. Around 20% of global liquified natural gas (LNG) also transited through the Strait of Hormuz last year, primarily from Qatar.

The inability of oil to traverse through the waterway, even temporarily, can ratchet up global energy prices, raise shipping costs and create significant supply delays.

Yet, in the aftermath of the U.S. attacks on key nuclear sites, Iran’s parliament reportedly approved the closure of the waterway, risking alienating its neighbors and trade partners.

“The pace at which tankers are entering the Strait of Hormuz has definitely slowed. We have indications from shippers that they are putting tankers and vessels on standby, so they are waiting for an opportune moment to enter the Strait,” Critchlow told CNBC’s “Europe Early Edition” on Monday.

“At the same time, there have been reports that suppliers of LNG, for example, in the Gulf have told lifters of LNG to wait before entering, so [as] not to loiter in the Gulf, keep vessels out of that region,” he added.

Japan’s Nippon Yusen, one of the world’s largest ship operators, recently introduced a standby to enter the Strait of Hormuz to limit the length of its stay in the Persian Gulf, according to S&P Global Commodity Insights, citing a company spokesperson.

Nippon Yusen’s policy, which comes as part of a precautionary measure following the escalation of Isreal-Iran tensions since June 13, means ships are asked to pause for a day or a couple of days when there is flexibility in the shipping schedule, S&P Global Commodity Insights reported on Monday.

The company has not implemented a navigation halt in the Strait of Hormuz, however.

Japan’s Mitsui O.S.K Lines also instructed vessels to limit time spent in the Gulf following U.S. strikes on Iranian nuclear facilities, Reuters reported Monday, citing a company spokesperson.

Spokespeople at Nippon Yusen and Mitsui OSK Lines were not immediately available to comment when contacted by CNBC.

German container shipping firm Hapag-Lloyd said it is continuing to sail through the Strait of Hormuz.

“However, the situation is unpredictable and could change within a matter of hours. In this case, our emergency and response plans, which we maintain as part of our crisis management system, come into effect,” a Hapag-Lloyd spokesperson said.

The United States conducted airstrikes on three of Iran’s nuclear sites on Saturday, entering Israel’s war against Tehran. The timing was unexpected. On Thursday, U.S. President Donald Trump said he was still considering U.S. involvement and would arrive at a decision “within the next two weeks.”

Financial and political analysts had largely taken that phrase as code word for inaction.

“There is also skepticism that the ‘two-week’ timetable is a too familiar saying used by the President to delay making any major decision,” wrote Jay Woods, chief global strategist at Freedom Capital Markets.

Indeed, Trump has commonly neglected to follow up after giving a “two week” timeframe on major actions, according to NBC News.

And who can forget the TACO trade? It’s an acronym that stands for “Trump Always Chickens Out” — which describes a pattern of the U.S. president threatening heavy tariffs, weighing down markets, but pausing or reducing their severity later on, helping stocks to rebound.

“Trump has to bury the TACO before the TACO buries him … he’s been forced to stand down on many occasion, and that has cost him a lot of credibility,” said David WOO, CEO of David Woo Unbound.

And so Trump followed up on his threat, and ahead of the proposed two-week timeline.

“There will be either peace, or there will be tragedy for Iran far greater than we have witnessed over the last eight days,” Trump said on Saturday evening.

But given Trump’s criticism of U.S. getting involved in wars under other presidents, does America bombing Iran add to his credibility, or erode it further?

The U.S. strikes Iran
U.S. President Donald Trump on Saturday said the United States had attacked Iranian nuclear sites, pushing America into Israel’s war with its longtime rival. Secretary of Defense Pete Hegseth said Sunday that “Iran’s nuclear ambitions have been obliterated,” a sentiment echoed by Trump, who stressed that “Obliteration is an accurate term.” The decision to attack Iran engages the American military in active warfare in the Middle East — something Trump had vowed to avoid.

Iran calls attacks ‘outrageous’
Iran’s Foreign Minister Abbas Araghchi on Sunday said Tehran reserves all options to defend its sovereignty and people after the “outrageous” U.S. attacks on three of its major nuclear enrichment facilities. Iranian state-owned media, meanwhile, reported that Iran’s parliament backed closing the Strait of Hormuz, citing a senior lawmaker. The U.S. on Sunday called on China to prevent Iran from doing so.

Investors assess U.S. attacks
U.S. futures slid Sunday evening stateside as investors reacted to Washington’s strikes on Iran. Futures tied to the S&P 500 lost 0.17%, Dow Jones Industrial Average futures fell 0.24% and Nasdaq 100 futures dropped 0.21%. On Monday, Asia-Pacific markets mostly fell at 1:45 p.m. Singapore time. Japan’s Nikkei 225 slipped 0.15% and South Korea’s Kospi Index retreated 0.3%. However, Hong Kong’s Hang Seng Index bucked the trend to climb 0.29%.

Oil prices pare gains
U.S. crude oil were up 1.1% to $74.65 per barrel, while global benchmark Brent climbed 1.12% to $77.88 per barrel early afternoon Singapore time. The commodity pared gains from earlier in the day, when prices jumped more than 2% in oil’s first trading session after Saturday’s events. That said, multiple analysts raised the prospect of oil hitting $100 per barrel, especially if exports through the Strait of Hormuz are affected.

[PRO] Eyes on inflation reading
Where markets go this week will depend on whether the conflict in the Middle East escalates after the U.S.’ involvement. Investors should also keep an eye on economic data. May’s personal consumption expenditures price index, the Federal Reserve’s preferred gauge of inflation, comes out Friday, and will tell if tariffs are starting to heat up inflation.

Why global markets are brushing off U.S. strikes on Iran

The U.S. joining the war between Israel and Iran might seem like a geopolitical flash point that would send markets tumbling.

Instead, investors are largely shrugging off the escalation, with many strategists believing the conflict to be contained — and even bullish for some risk assets.

“The markets view the attack on Iran as a relief with the nuclear threat now gone for the region,” said Dan Ives, managing director at Wedbush, adding that he sees minimal risks of the Iran-Israel conflict spreading to the rest of the region and consequently more “isolated.”

Furthermore, rhetoric around the idea of shutting down the Hormuz waterway has been recurring from Iran, but it has never been acted upon, with experts highlighting that it is improbable.

The U.S. joining the war between Israel and Iran might seem like a geopolitical flashpoint that would send markets tumbling. Instead, investors are largely shrugging off the escalation, with many strategists believing the conflict to be contained — and even bullish for some risk assets.

As of 1 p.m. Singapore time, the MSCI World index, which tracks over a thousand large and mid-cap companies from 23 developed markets, declined only 0.12%. Safe havens are also trading mixed, with the Japanese yen weakening 0.64% against the dollar, while spot gold prices slipped 0.23% to $3,360 per ounce. The dollar index, which measures the U.S. dollar against a basket of currencies, rose 0.35%. 

In general, the market reactions after the U.S. strikes have been less aggressive, especially relative to just over a week ago when Israel launched airstrikes against Iran.

“The markets view the attack on Iran as a relief with the nuclear threat now gone for the region,” said Dan Ives, managing director at Wedbush, adding that he sees minimal risks of the Iran-Israel conflict spreading to the rest of the region and consequently more “isolated.”

While the gravity of the latest developments should not be dismissed, they are not seen as a systemic risk to global markets, other industry experts echoed.

On Saturday, U.S. President Donald Trump said that the United States had attacked Iranian nuclear sites. Traders are now keeping a close eye on any potential countermeasures from Iran following the U.S. strikes on its nuclear facilities.