Tankers Keep Crude Flowing Through Strait of Hormuz Despite Escalating Iranian Attacks

According to CNBC, crude exports through the Strait of Hormuz averaged nearly 11.1 million barrels per day in October, about 2% below September, despite an escalation in attacks on commercial ships. At least 30 vessels, mostly oil tankers, were hit as of Oct. 27, leaving at least 16 seafarers injured, according to the International Maritime Organization. Crude prices rose more than 13% this month, with Brent trading above $117 a barrel on Friday. Shippers have adapted by using a shuttle system that transfers oil from tankers exiting the strait to vessels in the Gulf of Oman. The system has helped flows rise more than 70% since July, but has increased costs: daily rates to hire a supertanker for the Gulf of Oman-to-Asia route climbed from $249,000 in early September to $931,000 by the first week of October. Tankers’ security depends on U.S. military air support, and the duration of that support remains uncertain.