Standard Chartered Says Hormuz Oil Flows Are Far From Normal
Standard Chartered reports that Middle Eastern oil exports have returned to pre-war volumes, though the Strait of Hormuz is being bypassed by more expensive and complex logistics. The reliance on ship-to-ship transfers and alternative pipelines highlights the ongoing inefficiency and high costs in regional energy transit.
Why it matters
The shift in oil transit routes impacts global energy security and pricing, as reliance on less efficient bypasses increases operational costs for major exporters.
Oil flows through the Middle East have staged an impressive rebound, with export volumes recovering to near pre-war levels even as traffic through the Strait of Hormuz remains well below normal. Standard Chartered estimates crude and condensate exports from the Gulf, excluding Iran and including bypass routes such as Fujairah and the Red Sea, reached roughly 16.5 million barrels per day bpd in September, broadly back to pre-war volumes. But only 60% of those barrels crossed the Strait of Hormuz, compared with 83% before the war. Standard Chartered says the numbers show resilience rather than normalization exporters have found ways to move the oil, but they are doing it less efficiently and at considerably higher cost. The system has been forced to use more complex workarounds, particularly a vessel-intensive chain of ship-to-ship STS transfers.
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