Oil flow through the Strait of Hormuz has been gradually increasing as Middle Eastern producers ramp up exports. Currently, 6 to 8 million barrels of crude oil pass through the worldʼs main oil "narrow passage" every day.
Bloomberg writes about this.
About half of the pre-war volume passes through the strait. Two cargo ships were attacked on Monday. Shipowners are being encouraged to agree to risky voyages by record-breaking earnings in the supertanker market.
All major oil producers in the region, except Iran, now sell it for loading outside the Strait of Hormuz.
What about the Strait of Hormuz?
The Strait of Hormuz, a key route for global oil exports, has remained closed since the start of the war between the United States and Iran in late February, sending global oil prices soaring.
The strait was opened on June 18, when the sides agreed to a 60-day ceasefire. The US then lifted its naval blockade of Iranian ports. However, since early July, the sides have been exchanging blows again, and Iran has declared the Strait of Hormuz closed again.
On July 13, Donald Trump reported that the US would impose a 20% levy on cargo passing through the Strait of Hormuz and renew its blockade of Iranian vessels and their customers.
Iran now regularly attacks ships that attempt to pass through the strait without its permission. The US has responded to these attacks by striking Iranian military infrastructure.
In early August, the head of Iranʼs Supreme National Security Council Mohammad Bagher Zolghadr released a list of demands that the United States must fulfill in order for Tehran to reopen the Strait of Hormuz.
In particular, Iran is demanding the withdrawal of its troops, an end to the war, and the lifting of the naval blockade. Iran also wants the United States to compensate for the losses incurred during the war and to unblock frozen Iranian assets.
On August 17, the Arab media outlet Al Arabiya reported that Iran and the United States had agreed to extend the ceasefire. On August 20, Donald Trump reported the launch of the “most devastating economic operation” against Iran and its allies.
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