Gulf freight rates soar as Strait of Hormuz disruptions persist

## Market Snapshot

The market for average daily transits of the Strait of Hormuz by May 31 is currently priced at 6.5% YES for the 10-20 range, down from 13% in the last 24 hours. Meanwhile, the scenario pricing 0-10 daily transits is at 88% YES, up from 70% a day ago.

## Key Takeaways

– The increase in Gulf freight rates suggests a significant disruption in maritime traffic, consistent with a NO outcome for higher transit averages. – The shift from maritime to truck transportation indicates sustained conflict impacts in the region, supporting lower ship transit expectations. – Market pricing appears to reflect heightened risk and restricted transit availability through the Strait of Hormuz.

## Article Body