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U.S. Pushes Oil Flows Through Hormuz as Iran’s Exports Stall

The shift eases global supply, raises fuel costs, heightens the risk of regional escalation.

Overview

  • U.S. forces have, in recent weeks, loosened Iran’s control of the Strait of Hormuz and helped non‑Iranian shipments recover to roughly two‑thirds of prewar flows.
  • A U.S. blockade and stepped‑up interdictions have driven Iran’s crude exports down from about 1.85 million barrels a day to roughly 255,000 barrels a day by August, according to Kpler figures.
  • Iran‑aligned Houthi attacks have damaged Saudi infrastructure including the Jizan refinery and sharply cut shipments through the Bab el‑Mandeb route before a partial recovery to roughly 700,000 barrels a day.
  • The campaign is expensive and resource‑intensive: the U.S. has spent more than $37.5 billion, suffered 18 service‑member deaths, and reports say missile‑defense interceptors and other assets are under strain as fuel prices climb above $100 a barrel.
  • Diplomacy has stalled since a June de‑escalation deal collapsed, leaving economic pressure on Iran without a clear political endgame and increasing the risk that Tehran or its proxies will escalate attacks with broader effects on inflation and shipping.