US Weakens Iran's Leverage as Strait of Hormuz Oil Flows Persist
The US has significantly weakened Iran's leverage to pressure global oil markets by restricting traffic through the Strait of Hormuz, according to a report in the Wall Street Journal.
Iran had anticipated using this tactic to trigger a worldwide economic shock, but with the US naval blockade preventing Iranian oil shipments from the Persian Gulf since July, its effectiveness has been diminished.
The latest 28-day period saw an average of 5 million barrels per day of crude move through Hormuz, almost none of which was Iranian. Additionally, 2.5 million barrels per day were transported through Gulf of Oman ports, including Fujairah in the UAE.
This represents over 40% of pre-war oil flows, and global crude prices have remained below $100 a barrel, partly due to China drawing on domestic reserves and reducing imports.