U.S. Blockade Halts 90% of Iran Oil Exports as Brent Tops $91
Updated
Updated · OilPrice.com · Aug 20
U.S. Blockade Halts 90% of Iran Oil Exports as Brent Tops $91
3 articles · Updated · OilPrice.com · Aug 20
Summary
Kharg Island—handling more than 90% of Iran’s oil shipments—is no longer exporting, leaving Iranian barrels effectively absent from global market balances, Rapidan Energy Group’s Bob McNally said.
The blockade was reinstated after July’s collapsed “deal to make a deal” and renewed Middle East hostilities, reversing a roughly three-week pause during June and early July negotiations.
Brent crude has topped $91 a barrel this week, but McNally said futures still underprice geopolitical risk as traders grow less confident about a near-term, durable reopening of Hormuz.
Diesel markets are already signaling tighter supply: the U.S. diesel crack spread hit triple digits for the first time, peaking at $102 a barrel Monday before easing to about $100 Tuesday.