Crude oil shipments through Strait of Hormuz return to pre-war levels but refined product flows remain constrained
According to Kpler data, crude oil exports via the Strait of Hormuz have returned to their prewar level of around 13.5 million barrels per day as U.S. military escorts and pipeline rerouting helped boost shipments. However, this recovery is uneven: refined product flows from the Middle East remain significantly constrained at a seven-day average of just 677,000 bpd compared to over 3.6 million before the war. The global fuel crisis has intensified as diesel prices in the U.S. reach record highs due to supply shortages caused by disrupted refining capacity and ongoing conflict in Ukraine affecting Russian refineries. This poses a growing threat to economic stability, prompting discussions about potential export restrictions from President Donald Trump ahead of midterm elections. Meanwhile, Iran's crude oil exports have plummeted under U.S.-led sanctions and blockades. The country has offered to reopen the Strait if the U.S. returns to an earlier failed agreement but this offer was rejected by Washington.
Topics: Crude Oil Exports Fuel Crisis Global Energy Markets Strait of Hormuz