‘Economic war’: Is Iran losing its leverage over the Strait of Hormuz?
Summary
Oil flow through the Strait of Hormuz, a key waterway for global energy supplies, has recovered to about 80 percent of pre-war levels despite ongoing conflict between Iran and the United States. This recovery could reduce Iran’s influence in negotiations, although experts warn the situation remains unstable and oil shipments are not yet fully secure.Key Facts
- The Strait of Hormuz is a crucial passage for oil and petroleum, with about 9.7 million barrels per day moving through it in September.
- Oil exports from the Middle East reached 16.3 million barrels per day in September, the highest since fighting began in late February.
- Saudi Arabia significantly increased its oil exports from 2.4 million barrels per day in August to 5.4 million barrels per day in September.
- Before the conflict, around 120 to 140 vessels, including many oil tankers, crossed the strait daily.
- During the peak of hostilities, tanker traffic dropped to as few as two per day after Iran effectively closed the strait.
- Iran’s ability to disrupt the strait has been a key tool in its efforts to pressure the United States.
- Despite greater oil flow, oil prices remain high worldwide, and shipping costs and risks in the region are still elevated.
- Iran’s military spokesperson stated that the situation in the strait is not yet normal, despite increased traffic with US involvement.
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