Saudi Oil Exports to US Halt in July Amid US-Iran Conflict

US oil imports from Saudi Arabia dropped to zero in July, marking the first time an entire month passed without such shipments since 1985. The halt in Saudi oil exports to the US is due to disruptions caused by the US-Iran conflict, which has largely shut down Persian Gulf flows.

According to preliminary government data, US-bound shipments of Saudi crude stopped completely last month. This represents a sharp change from earlier this year when US refiners were purchasing more than 800,000 barrels of Saudi oil daily.

US refiners have been looking for alternatives to Saudi cargoes as the closure of the Strait of Hormuz and other war-related disruptions pushed up prices for barrels tied to the global benchmark. One company, has reduced its share of Middle Eastern crude flowing into its plants to less than 1% and is sending light crude from US fields to its New Jersey refinery.

Venezuela has benefited from the shift away from Saudi crude with American refiners importing around 600,000 barrels of Venezuelan crude in July, up from roughly 100,000 at the start of the year. However, imports of Saudi oil are forecast to rebound this month to about 300,000 barrels a day.