Hormuz Tensions Persist as Gulf Oil Flows Continue
The Strait of Hormuz remains a crucial point of tension in the ongoing US-Iran conflict. Despite Iranian pressure, Gulf oil producers have been able to move substantial volumes through the strait, with an average of 13.1 million barrels per day last week, according to Kpler data.
This is significant because the UAE sits alongside the waterway and is a major oil and shipping hub. A sustained disruption would affect energy prices, freight, insurance, and potentially consumer prices.
The current system depends heavily on military protection, alternative routes, and emergency logistics. JPMorgan estimates global crude and refined-product inventories have fallen by about 555 million barrels since the conflict began, with the bank warning that prolonged disruption could eventually push inventories towards a stress threshold, forcing prices higher.
The diplomatic track remains open despite major differences. Iran has been pushing a proposal involving a pause in fighting, the lifting of the US blockade on Iranian ports, and measures aimed at reopening Hormuz. The US has rejected claims that it offered sanctions relief or the release of frozen Iranian funds, with President Trump saying 'I offered them NOTHING.'