Oil Smuggling Thrives Through Strait of Hormuz Amid Iran Conflict
The Strait of Hormuz has been a focal point in the ongoing Middle East conflict, with its closure affecting global oil supplies and fuel prices. However, markets have seen both dips and surges in oil prices due to the situation.
According to Timothy Walker, senior researcher on Maritime Security at the Institute for Security Studies, some ship operators are taking a risk by moving their cargos through the Strait despite the threat of Iranian strikes.
These vessels operate using a 'shuttle system,' where smaller ships take oil from sources in the Gulf and then transfer it to larger vessels after exiting the Strait. The owners of these smaller ships seem to be relying on US protection, but they still fall prey to drone and missile attacks by Iran.
Despite the risks, the potential profits for those who succeed in transporting the oil are substantial enough to offset the risk of attack.