Iran's Grip on Hormuz Begins to Slip as Oil Flows Reach Near-Pre-War Levels
The Strait of Hormuz has seen oil flows return to nearly 80% of pre-war levels, thanks in part to military-escorted shuttles and pipeline diversions.
This is a significant blow to Iran's economic leverage in the region, as it can no longer dictate who gets to use the critical chokepoint.
In fact, according to Matt Smith of Kpler, 'it is clear Iran is losing its influence over' the Strait.
The US Navy has played a crucial role in keeping oil flowing through the strait, but at what cost? The military effort is expending tremendous resources just to maintain the status quo, and global inventories are shrinking toward operational lows.
In fact, JPMorgan reports that global oil inventories have tumbled by around 2 billion barrels during the Iran war. Despite this, the market has held out due to 'innovative solutions' like pipeline diversions and military-aided shuttle services.