Shipping through the Strait of Hormuz is disrupted, and Asian refineries resume U.S. crude oil purchases

BlockBeats message, July 14: As the US-Iran conflict escalated and shipping activity through the Strait of Hormuz fell sharply, Asian refineries are looking to increase spot purchases of US crude oil again to hedge the risk of disruptions to Middle East supply. Several industry executives involved in US crude oil sales and Asian refinery procurement said that negotiations on US crude spot trades have been restarted between the two sides.

Data show that, as of Tuesday, the number of observable vessels transiting the Strait of Hormuz has nearly stalled. Kpler data indicate that on Sunday of last week, only 14 vessels passed through the Strait of Hormuz, including 4 crude oil tankers, down by about 60% compared with the same period a week earlier. Before the outbreak of the conflict, more than 100 vessels transited the route daily, and about 20 million barrels of oil products were transported via this waterway.

In addition, maritime intelligence firm Windward said that the southern Strait of Hormuz route escorted by the US military had “basically collapsed” as of last Saturday, with more and more ships switching to routes passing on the Iranian side. The US Department of Energy said that more than 8 million barrels of crude oil still passed through the Strait of Hormuz on Sunday and added that the US military will continue to keep oil transportation running smoothly.