Iran warns military ships in Strait of Hormuz may become targets

## Market Snapshot

Strait of Hormuz Traffic in May market sees a consistent 12% YES pricing for 20 ships transiting by May 31. The Strait of Hormuz Normal Traffic market is currently at 7.5% YES for traffic normalization by June 15. Market activity reflects heightened concerns over shipping disruptions due to Iran’s recent warning.

## Key Takeaways

– Iran’s warning about targeting military ships appears consistent with reduced likelihood of normal shipping traffic in the Strait of Hormuz. – Market pricing suggests a significant escalation in tensions could impact ship transit, with odds of 20 ships transiting by May 31 currently at 12% YES. – The potential for military action in the Strait is reflected in decreased confidence in traffic normalization by June 15, with YES pricing at 7.5%.

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