Hormuz Exports Rebound, But Diesel Prices Soar Amid Ongoing Conflict

Crude oil exports from the Strait of Hormuz have largely returned to pre-war levels, according to analysts tracking the situation. Since the Iran war broke out on February 28, Tehran has sought to exert its authority over the strategic waterway and has at times even declared it closed.

However, recent weeks have seen oil exporters find alternative ways of transporting crude fuel out of the Middle East, including pipeline exports and ship-to-ship transfers. The US military continues to escort some vessels through the strait.

Kpler's analysis shows that about 40% of the region's crude is now transported without transiting the strait, compared with just 17% before the war. Saudi Arabia was able to restart operations on its east-west pipeline in late September, allowing exports from the Red Sea port of Yanbu to resume.

More than 70% of the crude that passed through the strait in August changed tankers, whereas before the war almost no Gulf crude changed ships in the Gulf of Oman. This poses a problem for businesses and households that depend on refined products such as diesel, which remains constrained.