Over 80% of Strait of Hormuz transits use Omani route as Iran’s influence wanes

More than 80% of liquid transits through the Strait of Hormuz used the Omani route over the past fortnight as U.S. Navy patrols helped ships avoid Iran’s preferred northern route, analysts said. Iran has attacked several vessels attempting to use the route along Oman’s north coast, but most ships have continued crossing under U.S. naval protection. Homayoun Falakshahi, head of crude oil analysis at Kpler, said Iran appears to have at least partially lost control of the strait. Kuwait, Saudi Arabia and the UAE are using VLCCs (very large crude carriers) to move oil through the waterway before transferring it to customer tankers outside the danger zone, while some tankers have switched off transponders for weeks, creating dark traffic that is harder for conventional tracking systems to detect. Energy Secretary Chris Wright said the seven-day average of oil flows through the strait had risen to nearly 9 million barrels per day, while upgraded regional pipelines and export facilities were moving another 5–7 million barrels per day, bringing total regional oil flows to about 15 million barrels per day. President Donald Trump has claimed the U.S. has total control of the strait, but continued Iranian attacks and depressed flows indicate that neither side has full control, according to analysts. A 60-day U.S.-Iran memorandum of understanding expired Monday without a broader peace deal. Oman and Iran are negotiating to restore freedom of navigation without U.S. involvement, while Trump threatened to bomb Oman if it gets in the way of his administration’s talks with Iran. Brent crude was up 0.99% at $91.92 per barrel and WTI crude was up 1.08% at $84.97 at the time of writing.

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Over 80% of Strait of Hormuz transits use Omani route as Iran’s influence wanes - CoinPost Terminal