Over 2 Million Barrels of Oil Daily Transiting Strait of Hormuz Despite Naval Blockade
More than 2 million barrels of oil per day are passing through the Strait of Hormuz despite an ongoing naval blockade, according to JPMorgan and energy analysts. Ships are reportedly paying tolls to Iran's newly created Persian Gulf Strait Authority or using shadow fleet tactics to avoid detection. The continued flow has prevented the oil market shock that would occur if the strait were completely closed, though depletion rates are rising as global stockpiles are tapped.
Energy experts report that approximately 2.1 million barrels of oil transited the Strait of Hormuz during the final two weeks of May, maintaining supply despite a naval blockade of the critical waterway. JPMorgan's head of global commodities strategy attributed the flow to ships paying tolls to Iran's Persian Gulf Strait Authority, with some vessels employing shadow fleet tactics—turning off radars to avoid detection—to move an additional 900,000 barrels daily. The Islamic Republic has reportedly collected toll payments of up to $2 million per tanker, with the PGSA claiming at least 300 non-Iranian ships have applied to the program. While this represents a significant decline from pre-conflict levels of 130+ ships daily, the continued flow has prevented the severe oil market disruption that would result from complete closure. US Energy Secretary Chris Wright confirmed the traffic increase, though analysts note that unpredictable shadow fleet movements are creating volatility in fuel prices.
What's missing
The article does not specify which country or coalition is conducting the naval blockade, or provide details on the stated justification for the blockade. Additionally, the specific timeframe and current status of the blockade are not clearly defined.
What different sources said
- New York PostRight
2M barrels of oil per day is escaping the Strait of Hormuz: experts
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