Middle East oil exports rise despite Strait of Hormuz attacks

Crude oil exports from the Middle East, excluding Iran, have surged despite ongoing attacks in the Strait of Hormuz. Data from maritime traffic monitoring organization Kepler shows that exports have exceeded 18 million barrels per day in recent days. In September, the region exported an average of 16.5 million barrels daily, a sharp increase from just 6 million barrels in March.

Oil exporters have adapted by shifting away from the Strait of Hormuz. About 40 percent of the oil now flows through alternative routes, including pipelines and the Red Sea. Saudi Arabia and the United Arab Emirates have increased their use of pipelines, while ship-to-ship transfers at sea have also become more common. Kepler reported that over 70 percent of the crude oil passing through Hormuz in August was transferred to another vessel mid-sea.

The resumption of Saudi Arabia's East-West oil pipeline has played a key role in this shift. The pipeline, which connects eastern oil fields to the Red Sea port of Yanbu, was temporarily shut down in September due to attacks but resumed operations on September 22. While initially operating at reduced capacity, it has helped ease pressure on Hormuz exports. Saudi Arabia exported 5.1 million barrels daily in September, with the UAE and Iraq contributing 3.2 million and 2.6 million barrels per day, respectively.

Despite these adjustments, risks remain. Attacks on ships in the Strait of Hormuz continue, and Iran claims control over the strait. Experts warn that while alternative routes have boosted supply, security threats and higher transportation costs persist. The increase in oil supply has already put pressure on prices, with Brent crude falling 0.79 percent to $101.44 per barrel and U.S. crude dropping 1.20 percent to $90.02 per barrel on Monday.