Oil Glut Panic: Producers ‘Desperate’ to Dump Stored Crude as Tankers Dodge Iran’s Strait Toll
Middle East oil producers are scrambling to unload crude stockpiled during the recent Persian Gulf conflict, with one industry chief calling them “desperate” to sell, even as a growing number of tankers reverse course in the Strait of Hormuz to avoid Iran’s new toll demands.
Oil producers in the Middle East are racing to sell crude stored during the recent conflict, but their efforts are being complicated by a spike in tanker attacks and Iran’s demand for a toll in the Strait of Hormuz, which has forced at least eight ships to turn back or take a riskier route closer to Iran [189249].
At least eight oil tankers trying to leave the Persian Gulf via the Omani coast turned back between Friday and Saturday, the latest sign that reopening the Strait of Hormuz remains difficult as Iran tries to assert control over the key waterway [189249]. Some of the ships continued their journeys by switching to a route closer to Iran, highlighting ongoing tensions in the region's most important oil shipping lane [189249]. The sudden reversals follow new attacks on commercial vessels, including strikes on the container ship *Ever Lovely* and the tanker *M/T Kiku*, which caused a sharp drop in traffic through the strait [184494].
Iran’s joint military command has warned that all oil tankers must use its approved routes or face a “forceful response” [187032]. Tehran is also insisting on charging a toll for ships passing through the strait, a demand that has become a major unresolved issue in the ongoing conflict with the United States [188773]. The standoff has contributed to a rise in oil prices, with Brent crude climbing 0.9 percent to $72.20 a barrel and U.S. crude rising 1.3 percent to $70.09 a barrel [184511].
Meanwhile, Middle East oil producers are “desperate” to unload crude stockpiled during the recent Persian Gulf conflict, according to TotalEnergies SE Chief Executive Patrick Pouyanné [189253]. However, supplies of gasoline and diesel remain tight due to ongoing shipping disruptions, creating a market imbalance where crude is abundant but refined fuel is still scarce, keeping fuel prices high for consumers [189253].
France and the United Kingdom have deployed mine-hunting ships to secure Oman’s territorial waters, focusing on countering underwater mine threats to ensure safe passage for commercial and military ships [189099]. The situation remains dangerous, but analysts believe Iran’s plan to collect tolls will fail, as the U.S. Navy and its allies have the power to keep the strait open, and a blockade would hurt Iran’s own economy [184913].