US and Iran Divide Strait of Hormuz Amid Oil Conflict

The United States and Iran have informally divided the Strait of Hormuz into two separate transit routes to maintain oil flows during a military conflict that began in February 2026. While Donald Trump maintains the waterway is open and American-controlled, the Government of Iran has declared the strait closed until the U.S. fulfills commitments from a June 17 interim peace deal.

Since early May, the United States Central Command has escorted approximately 1,300 commercial vessels, enabling the transit of over 660 million barrels of crude oil. Despite these efforts, flows remain significantly below prewar levels of 20 million barrels per day. The U.S. military has organized a shadow corridor to control the export of 10 million barrels daily from Gulf nations, while simultaneously blockading Iranian ports.

Iran continues to export crude oil through gray schemes, blending oil in Oman and the United Arab Emirates to hide its origin. The Government of China remains the largest buyer, transporting roughly 40% of these exports. Tensions have escalated with 17 attacks on commercial vessels in July and August, resulting in four sailor deaths. Consequently, the International Energy Agency has lowered its 2026 global oil supply forecast, projecting a market deficit for the third quarter.