Shadow Tankers Keep Oil Flowing Through Hormuz

The Strait of Hormuz is one of the busiest oil routes in the world, but it's also become increasingly perilous due to recent attacks. Despite the danger, oil prices have remained relatively stable, with Brent crude hovering between $80 and $90 per barrel through August.

According to U.S. Energy Secretary Chris Wright, approximately 9 million barrels of oil crossed the Strait in just seven days last week, which is a surprising number considering the attacks. Before the conflict with Iran, around 20 million barrels of oil moved through the Strait daily.

A workaround has emerged to ensure oil continues flowing: a 'dark trade' or relay system where tankers pick up crude at Gulf ports and transfer it to other ships waiting in safer waters near Oman's shores. This system involves about 150 vessels anchored off Oman, up from around 40 in January.

The Saudi Arabian company Adnoc has been affected by the attacks, with 23 of its ships targeted while transiting the Strait, resulting in one death and 20 crew injuries. However, Adnoc says the strikes are 'an attack on the infrastructure that keeps energy flowing.'