Middle East oil exports rebound despite Strait of Hormuz tensions

Middle East oil exports, excluding Iran, have surpassed pre-war levels despite ongoing tensions in the Strait of Hormuz. Data from maritime tracking firm Kpler shows that weekly shipments averaged above the pre-conflict level of 18 million barrels per day for several days last week, marking the first time since the US and Israel launched their offensive against Iran in late February.

Crude oil exports reached pre-war levels in September, with at least 16.5 million barrels leaving the region excluding Iran. Kpler noted that 40% of the oil now bypasses Hormuz, and most crude crossing the strait changes tankers offshore. The majority of the oil flows through pipelines in Saudi Arabia and the United Arab Emirates.

Alternative routes, including those via the Red Sea, are operating at full capacity to bypass the blockade Iran is attempting to impose on Hormuz. Despite Iran's claims of control over the strait, more ships are successfully navigating the route. However, experts caution that the situation remains far from normal, with Iran still deprived of a large share of its own exports due to a US counterblockade.

Saudi Arabia has benefited from the reactivation of its East, West pipeline, which links its main oil fields to the Yanbu terminal on the Red Sea. The pipeline, which was shut down on September 11 after being hit by strikes from Iraq, resumed operations on September 22. The United Arab Emirates also bypasses Hormuz through its pipeline linking Abu Dhabi’s fields to Fujairah on the Gulf of Oman.