Iran Boosts Oil Exports Despite War as It Controls Hormuz

Escalating conflict involving Iran, the United States and Israel has severely disrupted maritime traffic through the Strait of Hormuz, yet Tehran’s effective control of the chokepoint is allowing it to maintain and even increase its own oil exports. The narrow waterway normally carries around 20% of global oil trade, but security threats and soaring insurance costs have sharply reduced tanker movements.

According to S&P Global Commodities at Sea data, vessel traffic through the strait dropped to just three ships on March 9. One of them was a very large crude carrier (VLCC) transporting Iranian crude oil to China. Under normal conditions roughly 100 tankers pass through Hormuz each day, highlighting the scale of disruption to global energy logistics.

Market analysts say Iran has effectively deterred many foreign tankers from using the route through military threats while allowing ships carrying its own crude to transit. The situation has tightened global supply flows but still enables Tehran to move limited volumes of oil and generate export revenue. China remains a key buyer of Iranian crude despite sanctions, absorbing a large share of shipments.

The tensions around the Strait of Hormuz have also triggered sharp volatility in global oil markets. Brent crude briefly surged above $100 per barrel in the early stages of the conflict, reflecting fears of supply disruptions from the Gulf. Analysts warn that prolonged restrictions on shipping through the strait could have significant implications for global energy markets and trade flows.