Hormuz oil shipments at prewar levels but fuel shipments constrained
Crude oil shipments through the Strait of Hormuz have returned to prewar levels, though refined fuel product supplies remain significantly constrained. This imbalance is contributing to a global fuel crisis and rising diesel prices in the United States.
Why it matters
The disparity between crude availability and refined fuel supply poses a significant risk to global economic stability and domestic energy costs.
Crude oil exports from the Strait of Hormuz have basically returned to levels normal before the Iran war, as U.S. military escorts have boosted shipments and pipelines have redirected flows.
Crude transiting Hormuz reached a seven-day average of 13.5 million barrels per day as of Monday, which matches a prewar baseline for shipments through the strait, according to data published Wednesday by Kpler, a firm that tracks tankers and global trade flows.
Iran has claimed throughout the war that it controls Hormuz and has declared the closure of the strait multiple times. But Tehran is losing its influence as strong volumes pass through Hormuz, said Matt Smith, director of commodity research at Kpler.
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