Iran Tightens Grip on Energy Exports Through Strait of Hormuz

The ongoing conflict between Iran and the U.S.-Israeli alliance has led to a significant shift in energy flows through the Strait of Hormuz. According to sources, Iraq and Pakistan have cut deals with Iran to transport oil and liquefied natural gas from the Gulf.

The agreements demonstrate Tehran's ability to control energy exports through the strait, which normally supplies 20% of the world's crude oil and LNG. The U.S. has blockaded Iranian ports in recent weeks, affecting most of its crude exports and severely impacting producers such as Iraq, which relies heavily on oil revenues for 95% of its budget.

Iraq secured safe passage for two Very Large Crude Carriers (VLCCs) carrying approximately 2 million barrels each, which passed through the strait on Sunday. The country is working to secure approval for more transits from Tehran.

Similarly, Pakistan has agreed with Iran to transport Qatari LNG via a separate bilateral agreement. Two tankers loaded with Qatari LNG are headed to Pakistan to meet high summer electricity demand for cooling, following roughly 10 LNG cargoes per month before the war.