Rebounding Oil Exports Through Strait of Hormuz Face Risks from Iranian Tanker Attacks
Oil exports through the Strait of Hormuz have rebounded, but this increase is attributed to a significant U.S. military presence and comes at high costs for tanker crews due to increased attacks by Iran. Over the past month, nearly 20 commercial ships—mostly tankers—have been attacked in the region according to maritime security updates from allied forces. Iran has intensified its attacks on vessels transiting Hormuz, with two out of every 100 ships targeted during Q3 2024. The U.S. military is providing a de facto blockade and escort for tankers through the strait while also facilitating ship-to-ship transfers in the Gulf of Oman to reduce exposure to Iranian threats. However, this system increases costs and complexity. Despite fluctuations, crude shipments have averaged around 9–10 million barrels per day (bpd), still below pre-conflict levels of approximately 14.5 million bpd. Shipping rates for tankers from the Persian Gulf to China now exceed $1 million daily due to increased risk and insurance costs.
Topics: Iran attacks oil exports Strait of Hormuz U.S. military presence