**Title: Covert Oil Shipments Persist Through Strait of Hormuz Amid Ongoing Tensions**
In a significant development regarding global oil trade, Gulf states are reportedly continuing to ship oil through the Strait of Hormuz despite ongoing disruptions caused by the US-Iran conflict. According to a report by Bloomberg, these shipments are being conducted covertly, with tankers operating without their transponders activated to evade detection. This strategy comes in response to severe disruptions to normal maritime traffic and intermittent attacks in the region.
The Strait of Hormuz is a crucial maritime passage, historically facilitating approximately 25% of the world’s seaborne oil trade. The current geopolitical tensions have led to a de facto closure of the strait for regular traffic, significantly impacting global oil supply chains. Initially, the conflict resulted in a surge in oil prices, which peaked at nearly $120 per barrel. Analysts now warn that prices could escalate further, potentially reaching $150 in the coming months if the situation remains unresolved.
Despite these challenges, reports suggest that the volume of oil being shipped through the Strait of Hormuz has exceeded market estimates of 4 million barrels per day. Sources familiar with the shipments, who spoke to Bloomberg on the condition of anonymity, did not disclose the exact figures but indicated a significant level of activity. Countries including the United Arab Emirates (UAE), Iraq, Qatar, and Kuwait are reportedly engaged in these covert operations, utilizing "dark" tanker transits. Following initial transport, crude oil is often transferred to other vessels in the Gulf of Oman for further distribution.
The ongoing covert shipments, along with alternative pipeline routes, strategic stockpile releases, and a decrease in global oil demand, have contributed to maintaining oil prices within the $80 to $90 per barrel range. This stability comes despite the heightened risks associated with navigating the Strait of Hormuz, where incidents of attacks on vessels have become increasingly common.
The Abu Dhabi National Oil Company (ADNOC) has reported that 23 of its vessels have faced attacks since the onset of the US-Iran conflict, resulting in one fatality and numerous injuries among crew members. Just last week, ADNOC confirmed that two of its vessels were attacked while transiting through Hormuz, although all crew members were reported safe. UAE officials have attributed these attacks to Iranian forces and have called for Tehran to restore safe passage through the strait.
In addition to the UAE, Saudi Arabia appears to be preparing to utilize the Strait of Hormuz for oil shipments as well. Reports indicate that 16 supertankers are currently positioned off the coast of Oman, with three additional vessels expected to arrive soon. Each of these supertankers has the capacity to carry up to 38 million barrels of oil, underscoring the scale of operations that Gulf states are attempting to maintain despite the risks involved.
Insurers are also witnessing a steady increase in requests for coverage from Gulf oil producers, indicating a willingness to continue operations in a perilous environment. Pankaj Khanna, CEO of Heidmar Maritime Holdings, characterized the situation as a "dark trade," reflecting the challenges faced by shipowners who are often reluctant to take on the risks associated with navigating through the strait.
As tensions in the region persist, the future of oil shipments through the Strait of Hormuz remains uncertain. The ongoing conflict between the US and Iran, coupled with the strategic importance of this maritime route, will likely continue to influence global oil markets and pricing in the months ahead.