U.S. Energy Secretary Chris Wright stated that on Monday, over 17 million barrels of crude oil were transported through the Strait of Hormuz by ships. This represents the highest level since the outbreak of the war with Iran at the end of February, indicating that the export of energy from the Middle East is continuing to recover despite the ongoing conflict.
New highest level in a single day since the war began
In an interview with CNBC on Wednesday, Wright said that this level of transportation has reached a new high since the start of this round of conflicts. The Strait of Hormuz is one of the most important energy corridors in the world, and changes in the transportation of crude oil and refined products usually have a direct impact on the international oil market's assessment of supply risks.
After being included in the pipeline, it is higher than before the war.
Wright also stated that if the pipeline transportation via the Strait of Hormuz, which bypasses Saudi Arabia and the United Arab Emirates, is taken into account, the oil exports from the region on Monday had already surpassed pre-war levels.
Before the United States and Israel launched strikes against Iran on February 28, approximately 20 million barrels of crude oil and refined products were transported through the Strait of Hormuz daily. Compared to this baseline, the current flow through the strait is still below pre-war levels, but the overall export capacity has significantly recovered.
The market focuses on the stability of supply channels.
The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and serves as a crucial export route for oil-producing countries in the region to the global market. Following the outbreak of hostilities, there were concerns that transportation through the strait would be disrupted, which in turn could increase the risks to global crude oil supply.
The latest data indicates that, at least in terms of volume of transportation, exports from the Gulf region are returning to normal. For the oil market, this means that although geopolitical conflicts remain a source of risk, there has been no further contraction in actual supply flows so far.
