Oil flows through Hormuz Strait close to normal, US energy secretary says

NEW YORK — Crude oil flows through the Strait of Hormuz have returned to levels similar to those seen before the start of the Iran conflict, as tankers continue exiting the key waterway with the assistance of military escorts, U.S. Energy Secretary Chris Wright said on Wednesday.

Wright said approximately 20 million barrels of crude oil passed through the strait in the past 24 hours, representing around one-fifth of global consumption and aligning with volumes recorded in recent days following an initial U.S.-Iran agreement aimed at ending the conflict.

“I could say roughly 72 ships in the last 24 hours, and 20 million barrels of oil,” Wright said during the Reuters Global Energy Forum in New York. “We have normal flows today.”

He added that even if the preliminary deal reached this month to end the conflict ultimately fails, oil shipments would continue to move through the waterway.

“Iran will not have the ability to close the Strait of Hormuz going forward. That’s a critical thing, that’s their key leverage, and we’re taking that leverage away from them,” he said, adding that Iran’s military capacity has been depleted.

Benchmark crude prices fell more than $3 on Wednesday, reaching their lowest level since before the start of the Iran conflict in February, as easing supply concerns supported the safe passage of previously stranded tankers.

Shipments through the narrow waterway, which borders Iran, had been disrupted for months due to the conflict. Wright noted that many vessels currently exiting the strait are avoiding the main shipping channel over fears of mines, instead taking routes closer to the Iranian coastline or along southern passages near Oman, often under military escort. He said while the number of ships remains below normal levels, the vessels are generally larger in capacity.

He also said that full normalization of navigation could still take time due to the need for demining operations in the area.

“Returning to complete normalcy takes a demining of the strait, probably a few weeks’ effort,” he said.

Wright further noted that Venezuela’s oil exports are rising and could double from current levels to around 2 million barrels per day by the end of President Donald Trump’s administration in 2029, following U.S.-administered arrangements since the capture of former leader Nicolas Maduro in January.

-Reporting by Liz Hampton; Writing by Richard Valdmanis; Editing by Rod Nickel/Reuters