USA19 August, 20263 min read
U.S. Blockade Deepens Strait of Hormuz Disruption, Driving Brent Crude Near $89
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Brent crude hovers around $89–$91 as Hormuz disruption tightens oil supply. Fighting near the Strait of Hormuz raises expectations of prolonged supply disruption.
5 outlets told this the same way.
Hormuz oil flow disrupted
The ongoing U.S.-Iran conflict has kept the Strait of Hormuz effectively disrupted, with Brent crude rising to near about $89 per barrel as passage remains uncertain and relations stay tense.
The U.S. Energy Information Agency says Iran’s near-closure of the Strait of Hormuz choked off a trade route responsible for about 20% of global oil supply, or nearly 21 million barrels of oil each day, while a U.S. blockade of Iranian ships deepened the crude shortage.
ABC News reported that global oil prices stand at about $89 a barrel and that the average price of a gallon of gas is $4.06, putting it well above an average of $2.98 before the war.
U.S. Energy Secretary Chris Wright said the seven-day average for oil leaving the Strait of Hormuz is currently up to almost 9 million barrels per day, and he added that total oil flows are currently averaging approximately 15 million barrels per day when combined with additional barrels leaving via newly upgraded pipelines and export facilities.
Trump’s “territory” claim
President Donald Trump said at a rally in New York on Friday that, once the U.S. has defeated Iran, he intends to claim the Strait of Hormuz as “a territory of the United States.”
A Stocktwits report also said Iran has signaled it will fiercely defend control of the strategic waterway, quoting Major General Hatami that the “sacred Strait of Hormuz” is critical to ending the war and that Iran would defend it with “full force.”
24/7 Wall St. described Trump’s Truth Social post showing the words “NEW U.S. TERRITORY,” and it said the post followed comments that the U.S. controls the waterway through its naval blockade and that declaring it U.S. territory would be “an excellent idea.”
The same 24/7 Wall St. piece warned that if Washington tried to enforce ownership of Hormuz rather than maintaining freedom of navigation or its existing blockade, “the military consequences could be severe,” and it cited Reuters reporting that Tehran was preparing to shift toward a “fully offensive” posture.
Pipelines and secret corridors
ABC News said alternatives to the Strait of Hormuz include pipelines and that Aramco came to depend on a pipeline that runs along the width of Saudi Arabia from the Persian Gulf to a port on the Red Sea, carrying as much as 7 million barrels of oil each day, about 5 million of which are exported. ABC News also reported that the UAE has begun construction on a new pipeline to Fujairah on the Gulf of Oman that is expected to double the UAE’s exports through Fujairah to 3.6 million barrels a day by next year, while Jordan and Iraq are partnering on a pipeline that could transport as much as 1 million barrels a day to a port in the Red Sea.
Al-Waqa’i al-akhbariyya said the United States is carrying out a strategic secret operation to ensure the smooth movement of oil tankers through the Strait of Hormuz, including establishing a special navigational corridor secured by intensive aerial patrols of American fighter jets. That same report claimed that “about 15 to 20 oil tankers pass through this corridor daily,” transporting around 10 million barrels of crude, and it added that the volume of oil moved through the strait remains below pre-conflict levels but is gradually improving thanks to direct military protection.