Middle East Oil Exports Exceed Pre-War Levels Amid Strait of Hormuz Tensions

Middle Eastern oil exports, excluding Iran, surpassed pre-war levels last week despite attacks on tankers in the Strait of Hormuz, according to data from maritime analytics firm Kpler. For the first time since the start of the "American-Israeli war on Iran" in late February, average weekly crude oil flows from Gulf states and Iraq through the Strait of Hormuz increased for several consecutive days, exceeding the pre-war rate of 18 million barrels per day. These figures include oil exports via the Red Sea, a route increasingly used to bypass the Strait of Hormuz, which previously handled one-fifth of the world's oil and LNG shipments. Iran claims control over the Strait, while Washington has imposed a naval blockade on Iranian ports. Iran now demands consent from ships wishing to transit, warning of attacks for non-compliance. However, oil tankers are increasingly transiting the Strait under U.S. protection to exit the Gulf. Alongside the recovery in Strait of Hormuz traffic, alternative routes are operating at full capacity. Saudi Arabia is particularly benefiting from the reactivation of its East-West pipeline, connecting major oil fields in the east to the Red Sea port of Yanbu in the west. This pipeline, the world's largest crude oil exporter, had been closed since September 11 following attacks attributed to Iraq. The UAE also has an alternative to the Strait of Hormuz via a pipeline to the Fujairah terminal, located outside the Strait. Meanwhile, Brent crude oil futures for December delivery fell 0.79% to $101.44 per barrel, and West Texas Intermediate futures for November delivery dropped 1.20% to $90.02 per barrel.