Hormuz Blockade Weakness Revives Middle East Oil Exports
The Strait of Hormuz, a critical waterway for Middle East oil exports, has seen its blockade capability weaken. As a result, crude oil transport through the strait and alternative routes has recovered to nearly 80% of pre-war levels by last week.
According to vessel tracking data from Kpler and Huax, crude oil exports from major Middle East producers such as Saudi Arabia, Iraq, and the UAE rebounded to nearly 13 million barrels per day in September. This is the highest level since February, when the region exported nearly 19 million barrels per day.
The increase can be attributed to improved defenses against Iranian attacks, with more tankers able to pass through the strait safely. Saudi Arabia has also resumed transporting crude oil through its damaged East-West pipeline to load onto tankers in the Red Sea.
However, transport volumes remain reduced, and a portion of current production is slated for domestic refineries in Saudi Arabia. Iranian crude oil exports have been severely impacted, with Kpler projecting that Iranian crude oil loaded on tankers operating outside the blockade line will be depleted by early or mid-October.