The Strait of Hormuz remains closed to maritime traffic amid ongoing tensions with Iran, as noted by Matt Smith, an analyst from Kpler. Recent attacks attributed to Iran have severely impacted Saudi Arabia's oil infrastructure, leading to a significant reduction in its crude oil throughput. Specifically, an assault on the East-West pipeline, which transports oil to the Red Sea, has cut Saudi exports by 700,000 barrels per day. This pipeline is crucial for the kingdom, especially given its reliance on it to bypass the Strait of Hormuz, where Iranian hostilities have posed risks to shipping.
In addition to the pipeline incident, Saudi Arabia has faced attacks on its Manifa and Khurais production facilities, resulting in a further decrease of 600,000 barrels per day. These disruptions contribute to a broader strain on global oil supplies, exacerbated by Iran's threats against tankers in the Strait of Hormuz.
Despite a recently negotiated two-week ceasefire by the U.S., which included arrangements for Iranian approval of shipping passage, the CEO of the Abu Dhabi National Oil Company, Sultan Ahmed Al Jaber, asserted that the strait remains effectively closed. He emphasized that access to the strait is now conditional and controlled by Iran, contradicting any claims of open passage.
The Strait of Hormuz is vital for Gulf oil producers, linking them to international markets. Before the escalation of hostilities, approximately 20% of the world's oil supply transited through this route. Currently, disruptions have led to a shutdown of about 13 million barrels per day in production across the Gulf region, indicating a significant impact on the global oil market.