US-Iran Conflict Disrupts Oil Exports to the Tune of 2.8 Billion Barrels

The ongoing US-Iran conflict has resulted in significant losses for crude oil exports through the Strait of Hormuz, according to the International Energy Agency (IEA). The agency estimates that approximately 2.8 billion barrels of oil have been lost since the start of the war.

Despite these losses, alternative supply routes and stock draws have helped fill part of the gap, with combined exports from Saudi Arabia's Yanbu and the UAE's Fujairah rising to 7.8 million barrels per day (b/d) in June, before decreasing to 5.5mn b/d in August due to Houthi attacks in the Red Sea.

The IEA also reports that increased production outside the Mideast Gulf from countries such as the US, Brazil, Kazakhstan, Venezuela, and Nigeria has offset an additional 420 million barrels of the cumulative losses.