Middle East Oil Flows Rise Despite Ongoing US-Iran Tensions
Oil flows out of the Middle East are increasing despite ongoing US-Iran tensions. The situation indicates that Tehran's grip on key export routes may be loosening, according to recent reports.
Saudi Arabia has partially restored output along its pipeline to the Red Sea, with Bloomberg reporting a significant increase in oil shipments through this route.
Research firm Kpler found that shipments through the Strait of Hormuz and bypassing it reached nearly 80% of prewar levels last week. However, traders note that any progress on supply is dependent on less efficient operations than before the conflict.
The Wall Street Journal warned that Iran's loss of de facto control over the Hormuz Strait increased 'the risk it will resort to military escalation to bolster its position.'