Iran Loses Hormuz Leverage as 40% of Gulf Crude Bypasses Strait
Updated
Updated · OilPrice.com · Oct 3
Iran Loses Hormuz Leverage as 40% of Gulf Crude Bypasses Strait
3 articles · Updated · OilPrice.com · Oct 3
Summary
16.5 million barrels a day of Persian Gulf crude left the region in Sept. 1-28, near prewar levels even as 40% moved through pipelines, Red Sea routes and offshore transfers instead of Hormuz.
9.9 million barrels a day still crossed the strait, but more than 70% of August cargoes were shifted to other tankers in the Gulf of Oman under arrangements far from normal commercial shipping.
U.S. naval protection and new routing have weakened Tehran's ability to make Hormuz too dangerous for shippers, though analysts say that leverage has eroded rather than disappeared.
Diesel markets still show the cost of that workaround: EU pump prices hit record levels on Oct. 1, U.S. diesel also surged, and oil retains a war premium from insurance, security and operational risks.