Oil Tanker Flows Remain Resilient Despite Surge in Iranian Attacks in Strait of Hormuz
Despite a significant escalation in Iranian attacks on commercial vessels during October, crude oil exports through the Strait of Hormuz have remained relatively stable. While ship attacks doubled compared to September—with at least 30 vessels hit as of late October—average daily flows stood at approximately 11.1 million barrels per day (bpd), only a 2% decrease from September levels. The shipping industry has mitigated risks by implementing an inefficient but effective 'shuttle system.' This involves tankers transiting the strait with transponders off and transferring cargo to different vessels in the Gulf of Oman to manage insurance costs. While this adaptation keeps oil moving, it comes at a high logistical cost and contributes to surging freight rates and volatile crude prices.
Topics: crude oil supply geopolitical conflict maritime security oil tanker attacks Strait of Hormuz