Oil Flows Hit 10 Million Barrels a Day as Saudi Arabia Restarts Hormuz Exports After 3-Month Halt
Oil shipments through the Strait of Hormuz have surpassed 10 million barrels per day, with Saudi Arabia resuming exports after a three-month halt, even as Iran threatens a "forceful response" to tankers that don't use its approved routes.
The Strait of Hormuz, a narrow waterway between Iran and Oman that handles about one-fifth of the world's oil, has seen a surge in traffic despite ongoing geopolitical tensions [186729]. Saudi Arabia restarted its oil exports through the strait earlier this year following a pause, according to data from market analysis firm Kpler [187887].
However, Iran's joint military command has warned that all oil tankers traveling through the strait must use its approved routes or face a "forceful response" [187032]. The warning did not specify what actions Iran might take. This comes after Iran killed a joint France-Oman plan to clear underwater mines from the strait and guarantee "free and unconditional" passage for ships [187479]. Iran's deputy foreign minister announced that Tehran would demine the strait alone, rejecting any foreign help.
Oman's stance on potential fees for ships passing through the strait remains unclear, creating what experts call a "blind spot" for global energy markets [187867]. The lack of clear policy leaves traders unable to predict future costs for the critical passage.
Despite these threats, crude oil prices fell below $72 a barrel after U.S. President Donald Trump signaled willingness to continue negotiations with Iran [186647]. Traders saw the steady flow of tankers as a sign that supply disruptions are unlikely, boosting optimism that diplomatic efforts are making progress [186668].
Shell has warned that continued disruption in the strait could cause a rare drop in global liquefied natural gas (LNG) supply this year, though the company expects supply to grow again by 2027 [185367].
Iran's top negotiator said the country will allow free passage through the strait for only 60 days under a proposed deal with the United States, setting a strict deadline for Washington [185703].