Strait of Hormuz Shipping Disrupted, Asian Refineries Resume US Crude Purchases

BlockBeats News, July 14th, as the US-Iran conflict escalates and shipping activities in the Strait of Hormuz significantly decrease, Asian refineries are re-increasing their purchases of US crude oil on a spot basis to hedge against the risk of supply disruptions in the Middle East. Several industry executives involved in US crude oil sales and Asian refinery procurement operations have stated that both parties have restarted US crude oil spot trading negotiations.

Data shows that as of Tuesday, the observable vessel traffic in the Strait of Hormuz has almost come to a standstill. Kpler data shows that last Sunday, only 14 vessels passed through the Strait of Hormuz, including 4 crude oil tankers, a decrease of about 60% from the same period the previous week; before the conflict erupted, over 100 vessels transited the strait daily, transporting around 20 million barrels of oil products through the waterway.

Furthermore, maritime intelligence company Windward has stated that the southern route of the Strait of Hormuz, escorted by the US military, collapsed "basically" last Saturday, with more and more vessels opting to take the Iranian-side route. The US Department of Energy has indicated that over 8 million barrels of crude oil still passed through the Strait of Hormuz last Sunday and stated that the US military will continue to ensure the smooth flow of oil transportation.