Market reactions to US energy secretary's statements on Persian Gulf oil flow

U.S. Energy Secretary Chris Wray asserted that despite heightened tensions between the U.S. and Iran, a substantial portion of global oil transit continues through the Strait of Hormuz. He reported that roughly two-thirds of pre-war oil flow, approximately 14 million barrels per day, still traverses the vital waterway.

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The numbers of ships have decreased more dramatically (in the Strait of Hormuz), but of course we are using larger oil tankers so as to keep the global markets as well supplied as possible.

Wray elaborated that weekly averages indicate nearly 7 million barrels daily passing through the strait, with an equivalent amount rerouted via bypass pipelines. He explained that while the number of ships has decreased, larger tankers are being utilized to maintain adequate supplies for global markets. "The numbers of ships have decreased more dramatically (in the Strait of Hormuz), but of course we are using larger oil tankers so as to keep the global markets as well supplied as possible," Wray stated.

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unlikely

However, these assessments have met with skepticism from industry analysts. Andy Lipow, president of Lipow Oil Associates, called the figures "unlikely" if referring to a specific recent week. Data from Kpler, an analytics firm, showed no tankers passing through the strait since July 15, a stark contrast to the 32 ships recorded on July 10. Lipow noted that while about 200 million barrels crossed the strait in the first three weeks of a ceasefire, two large tankers successfully transported 4 million barrels on a recent Monday, though two others sustained significant damage.

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It is tragic to lose American lives, but this is a mission that will save countless lives in the future.

The United Arab Emirates has reportedly chartered tankers to move oil from within the strait, aiming to facilitate its flow to international markets. Meanwhile, Wray also addressed U.S. responses to military losses, stating that President Donald Trump's focus remains on weakening Iran's ability to "terrorize the world" and prevent it from acquiring nuclear weapons, despite the tragic loss of American lives.

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The focus of (Trump) is on weakening Iran's ability to terrorize the world, to hold global trade hostage – as it is doing now – and to prevent Iran from acquiring nuclear weapons. That remains unchanged.