Hormuz Shipping Disruptions Cushioned by Stored Barrels and SPR
The Strait of Hormuz has seen a significant drop in shipping traffic, with only five cargo ships passing through on August 16, 2026, and zero registered transits reported the following day. This marks a 90% decline from the previous weekend's traffic, raising concerns about potential disruptions to global oil supply.
The Brent crude price held steady at $88.45 per barrel, while West Texas Intermediate (WTI) fell 0.74% to $81.79 on August 17, 2026, despite the near-zero Hormuz traffic. This suggests that stored barrels are replacing disrupted Gulf supply, cushioning the impact of reduced shipping through the Strait.
The US Strategic Petroleum Reserve (SPR) has fallen to a four-decade low of 298.7 million barrels and would drop to approximately 243 million after the authorized release of 172 million barrels. This reduction in emergency inventory raises concerns about the ability to replace disrupted crude supply.