Hormuz Tensions Persist as Oil Exports Continue to Struggle
Despite ongoing US-Iran negotiations, the security situation in the Gulf continues to deteriorate. The latest development is the new wave of strikes launched by the US on Iran after attacks on US forces in Jordan.
The increased tensions have had a direct impact on oil exports from the Gulf region. Shipping traffic through the Strait of Hormuz has only slightly increased, with 14 commodity vessels transiting the chokepoint in both directions on Wednesday, up from single digits the previous week.
According to Kpler data, the crude backlog has shifted between the Gulf and the Gulf of Oman rather than disappeared. Persistent maritime security risks, war risk insurance costs, and Iranian interdiction are now the main barriers to oil exports.
US Energy Secretary Chris Wright said that 6.5 million barrels of oil a day moved through the strait over the past week with US support. He stated, 'We are using the United States military to escort out oil and gas out of the Strait of Hormuz.'