Hormuz Oil Flows Rebound Amid Ongoing Middle East Tensions

Oil flows through the Strait of Hormuz have rebounded in September, but the global energy market is still on high alert. The strategically important waterway saw crude exports reach an estimated 12.8 million barrels per day in September, according to Kpler data.

This marks a significant improvement from the disruptions seen earlier in the conflict, although flows are still below pre-war levels. Regional shipments have also increased, with Middle Eastern crude exports climbing to around 16.3 million barrels per day this month, compared to roughly 19.5 million barrels per day before the conflict.

Saudi Arabia has played a major role in the recovery of oil export flows. Its crude exports increased sharply during September, and 19 Very Large Crude Carriers passed through Hormuz last week. Saudi Arabia is also rebuilding its ability to bypass Hormuz by resuming oil loadings at Yanbu on the Red Sea.

Despite the improvement in physical oil flows, the geopolitical premium in crude markets remains. Brent crude climbed to around $107 per barrel on Tuesday, while West Texas Intermediate traded near $94.