Middle East Oil Crisis Tightens as Hormuz Strait Faces Increased Pressure

The Strait of Hormuz, a critical waterway for global oil supplies, is facing increased pressure due to drone attacks and Houthi rebel seizures. The East-West Pipeline in Saudi Arabia has been badly damaged, which could leave it out of service for three to five weeks. This pipeline carries approximately 2.6 million to 4 million barrels of crude oil per day.

The damage to the pipeline has already led to increased costs for American consumers, with U.S. diesel prices hitting a record national average of $6.23 a gallon and regular gasoline averaging $4.32. Brent crude also climbed as high as roughly $110 a barrel during the day.

Iran's oil exports have been severely curtailed by the U.S. naval blockade, which has left Iran without meaningful new crude exports through Hormuz since July 14. According to Kpler, Vortexa, and TankerTrackers.com, no Iranian crude cargoes have successfully crossed the strait to China, Tehran's largest remaining oil customer.