How does Iran smoothly export its oil despite the closure of the Strait of Hormuz?
Despite the closure of the Strait of Hormuz due to ongoing conflict, Iran has managed to continuously export its oil, raising concerns about global supply chains.
The ongoing conflict in Iran has disrupted oil exports through the Strait of Hormuz, a vital passage for global energy supplies, affecting about one-fifth of the world’s energy supply. The closure of the strait, declared by Tehran, has resulted in hundreds of vessels, many laden with oil and gas, stranded on both sides while awaiting passage, exacerbating fears regarding the disturbance of global supply chains. Iranian Revolutionary Guard has warned that it will not allow any oil shipments in the area or through it if American and Israeli attacks on Iran continue, posing a direct threat to international energy trade. Nevertheless, reports indicate that Iran continues to export oil via the strait, benefitting from special arrangements despite the announced closure, which raises questions about the actual restrictions on navigation. U.S. Treasury Secretary Scott Piesent disclosed that Iranian ships have begun to pass through the strait, suggesting that Iran is effectively circumventing imposed limitations. This situation puts into focus not only Iran’s resilience in maintaining oil exports but also the broader implications for global energy markets amid geopolitical tensions.