Crude oil shipments through the Strait of Hormuz have rebounded to 10.3 million barrels per day, but refined fuels like diesel remain scarce. Damaged refineries in Saudi Arabia, Kuwait, the UAE, and Iraq are limiting product output, driving U.S. diesel prices to a record $6.53 nationally and $8.44 in California. The Trump administration is pressuring allies as the G7 agreed to release 100 million barrels of emergency crude and fuel.
Refined product flows through Hormuz are only 11% of total volume, down from over 20% prewar. Asia-bound crude is arriving, but China, Japan, and South Korea are withholding diesel exports. Full recovery is projected no earlier than 2027.
Iran has renewed attacks on vessels, threatening shipment stability. U.S. oil executives urge Navy escorts for product tankers over crude carriers, as VLCCs dominate current escorts. Saudi crude exports are surging, signaling regained control of strait traffic.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing