Gulf Oil Flows Defy War Fears as Strait of Hormuz Sees Record Crude Volumes
The Strait of Hormuz has seen a massive influx of crude oil flows despite war fears in the region. According to marine-tracking firm Kpler, oil and petroleum-product flows through the strategic waterway averaged 13.1 million barrels per day last week, just below 80% of the 17.1 million barrels per day that crossed the strait before the war began.
US Navy-backed workarounds have played a crucial role in keeping the Strait of Hormuz operational, including military-escorted tanker shuttles and rerouted export flows. This has allowed Gulf producers to move far more crude through the waterway than expected.
The rebound reflects a complicated effort by Gulf producers and the US, but it also masks a deeper problem: the present arrangement may be functioning, yet it is far from secure. The strategy has bought the market time, but it has not eliminated the underlying risk that a wider escalation or another infrastructure strike could rapidly disrupt supply.