US Crude Imports from Middle East Set to Surge Amid Iran Conflict

The United States is set to import around 600,000 barrels per day of crude oil from the Middle East in August, marking the highest level since the Iran war began. The increase follows a temporary reopening of the Strait of Hormuz and alternative shipping routes that have pushed regional barrels toward US refiners.

A memorandum of understanding between the US and Iran in June allowed vessels to exit the strategic waterway, enabling additional Middle Eastern crude to reach global markets after months of disruptions caused by the conflict.

Saudi Arabia has redirected some crude from its eastern fields to the Red Sea port of Yanbu through a domestic pipeline, allowing shipments to bypass the Strait of Hormuz. Some cargoes have been routed through the Suez Canal as security risks around the Bab el-Mandeb Strait made southern routes less attractive.

The shift has made the US a more competitive destination for some Middle Eastern crude cargoes due to shorter shipping times compared with Asian markets, according to Reuters.