Oil flows through the Strait of Hormuz have recovered to roughly two-thirds of pre-war levels, Goldman Sachs says, easing the US-Iran conflict's hit to crude supply. Total Gulf exports have climbed to 15 to 16 million barrels a day, though volumes remain 7 to 8 million barrels below pre-war levels. Iran is now weighing conditions to reopen the strait as U.S. forces control the waterway.
Oil flows through the Strait of Hormuz have rebounded to around two-thirds of levels seen before the US-Iran war, according to Goldman Sachs. The recovery has helped limit the conflict's damage to global crude prices.
Gulf exports climb but stay short of pre-war levels
Goldman Sachs analysts Daan Struyven and Yulia Zhestkova Grigsby wrote in a note to clients that total exports of crude oil and oil products from the Gulf region have risen to 15 million to 16 million barrels a day, helped by higher crossings through the strait. Even so, volumes remain 7 to 8 million barrels below pre-US-Iran war levels. Hormuz flows had fallen to between 5 million and 6 million barrels a day in March.
The bank's figures likely sit close to U.S. officials' estimate of 8 million to 10 million barrels a day. Treasury Secretary Scott Bessent said the U.S. has guided 130 million barrels out over the past 14 days under what he called Operation Economic Outcast, adding: "The Blockade and Operation Economic Outcast will crush the failing Iranian economy."
U.S. forces control the strait as Iran weighs reopening terms
CENTCOM Commander Admiral Bradley Cooper said U.S. forces have taken full control of maritime traffic through the Strait of Hormuz, claiming Iran is now completely shut out of its own oil exports. U.S. forces also cleared Iranian-laid mines from international shipping lanes, allowing commercial traffic to resume under American protection.
Iran, however, is preparing a list of conditions to reopen the strait after Qatar's prime minister pressed Tehran on freedom of navigation. Mohsen Rezaei, secretary of Iran's Supreme National Security Council, said Iran will discuss reopening the strait and gradually increasing traffic.
Crude prices dropped slightly to below $83 a barrel on Friday, even as President Donald Trump signaled he is not interested in a deal with Iran.
Source: CoinGape
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