Gulf States Restore Oil Exports Through Strait of Hormuz

Crude oil flows through the Strait of Hormuz have increased to between 6 million and 8 million barrels per day, up from approximately 4 million in mid-July. The Government of Qatar and the Government of Kuwait have restored their exports to 70% of pre-war levels by utilizing shuttle services and ship-to-ship transfers in the Gulf of Oman to mitigate chokepoint threats.

Other regional producers have adopted similar risk-reduction strategies. The United Arab Emirates restored exports to pre-crisis levels in June using onshore pipelines and dark mode shipping, while the Government of Saudi Arabia has utilized the Red Sea and Mediterranean ports in Egypt. To avoid the strait, shuttle tankers are moving oil to collection points such as Sohar, Oman, and Fujairah, United Arab Emirates.

Despite the increase in supply and renewed negotiations between the Federal government of the United States and Iran to end the war, the security environment remains volatile. Two freighters were struck on Monday, and the United States continues to maintain a blockade on Iranian exports. These operational adjustments by Gulf states have pressured Brent oil futures downward and helped stabilize benchmark crude prices despite tightening global fuel markets.