All articles tagged with #oil shipments
Data on oil moving through the Strait of Hormuz is divided along political lines: ship trackers say crossings are in the single digits and far below pre-conflict levels, while the White House touts a much larger flow, underscoring a contentious debate over how much oil is getting through as tensions with Iran escalate.
Oil movement through the Strait of Hormuz surged to about 6.1 million barrels per day (374 million barrels in 60 days) during the US-Iran MoU, but remains far below pre-war levels of around 15 million bpd, averaging 2.3 million bpd in April–June and reaching only about 40% of the 2025 peak. The MoU expired without a peace deal amid ongoing attacks on commercial vessels, with five ships attacked in the past week and one seafarer killed on the Minoan Dignity, bringing total seafarer deaths to at least 18 since the war began. Transit activity in the strait dropped to 73 vessels Aug. 10–16 from 91 the prior week, while Brent crude hovered around $91.93 per barrel as markets weigh the risk to flows and a durable diplomatic framework.
Energy Secretary Chris Wright said oil tankers continue to transit the Strait of Hormuz, with about two-thirds of pre-conflict traffic (~14 million barrels per day). He dismissed reports that most shipping has halted and framed the issue as ensuring flow of oil and gas with or without Iranian cooperation, even as fighting renews and a deadly attack at a U.S. base occurred. Wright tied the goal to President Trump’s mission of preventing Iran from obtaining a nuclear weapon.
Oil shipments through the Strait of Hormuz have fallen back toward pre‑peace‑deal levels as renewed US–Iran fighting disrupts flows following a fragile ceasefire. Goldman Sachs says flows had recovered to about 60% of prewar levels but dropped to roughly 3–5 million barrels per day, leaving a Gulf-wide supply gap and pushing Brent above $84 and WTI above $79. The decline comes as US strikes and Iranian retaliations escalate, with a second naval blockade redirecting vessels. Analysts warn recovery could be slower this time due to limited stores and ongoing disruptions, keeping oil prices and volatility elevated amid shifting demand signals from major importers like China.
Since the US-Iran deal aimed at ending the conflict, the Strait of Hormuz has seen renewed shipping, with 172 vessels crossing and 42 on Saturday; more than 200 tankers remain waiting inside the strait as sanctions relief allows Iranian crude sales for 60 days. Traffic includes both resumed normal trade and some previously sanctioned tankers and LNG shipments, but overall crossings are still well below the pre-war daily average. The transit regime is being enforced by Iran’s PGSA with permit requirements, and mine concerns plus conflicting statements about the strait’s status continue to influence route choices and caution.
With Iran controlling the Strait of Hormuz, some Middle Eastern firms are moving oil and fertilizer by land across the Arabian Desert, forming thousands-strong truck convoys that, while slower and costlier, keep trade flowing. Maaden has expanded its desert fleet from about 600 to as many as 3,500 trucks, using trains as well to reach ports not controlled by Iran; major shippers note the overland route cannot replace sea capacity but helps cushion supply chains and inflation. A vivid example is UK-to-Dubai shipments taking a 16-day land route via Europe and Egypt. The arrangement reflects a temporary workaround to geopolitical chokepoints, reshaping logistics and price dynamics without fully replacing traditional shipping.”
The U.S. says its Navy is clearing Iranian mines in the Strait of Hormuz to restore passage for a major share of global oil shipments, but experts warn the effort could take months and may not fully reassure merchants or insurers. The push comes amid a fragile ceasefire and ongoing tensions, with officials noting that even after sweeping, confidence in a safe corridor remains uncertain and risk assessments by insurers are complicating transit decisions.
Despite a U.S. blockade aimed at Iran, data from Vortexa show at least 34 Iranian-linked tankers have bypassed restrictions since mid-April, with about 19 tankers exiting the Gulf carrying crude (roughly 10.7 million barrels worth ~$910 million at a $10 Brent discount). Some used ship-to-ship transfers and off-transponder signaling to mask origin; Iran says the Strait of Hormuz is open only with Tehran’s permission, while the U.S. has directed 28 vessels to turn back. Shipping remains contested, described by owners as a 'double blockade.'
Iran has proposed levying tolls on vessels passing through the Strait of Hormuz, a move described as violating global trade norms that could heighten regional tensions and disrupt global oil shipments.
Iran is pushing a plan to monetize transit through the Strait of Hormuz by charging tolls on ships, tying passage to its geopolitical demands as it signals a “new regime” for the chokepoint. If implemented, fees could generate hundreds of millions to billions in revenue and rival the Suez Canal, but experts say such transit charges lack a clear basis under international law. The move underscores Tehran’s leverage from shipping disruptions, even as Western powers warn against tolls while some vessels reportedly test paid routes.
Lukoil declared force majeure on oil shipments from its West Qurna 2 field in Iraq due to US sanctions, impacting its international operations and leading to canceled cargoes, with the field's operatorship transferred to Iraqi firms to maintain production.
The US and South Korea have established a task force, the Enhanced Disruption Task Force (EDTF), to prevent North Korea from obtaining illicit oil, amid concerns over potential Russian assistance. The task force aims to disrupt North Korea's refined oil procurement networks and consider actions to expose sanctions evasion activities and engage private sector and third-party actors. This move comes as deadlock at the UN Security Council raises doubts about the future of international sanctions on North Korea.