4 Million Barrels of Saudi Crude to Transit Strait of Hormuz
Two very large crude carriers (VLCCs), fully loaded with Saudi crude oil, are set to transit the Strait of Hormuz, signaling a gradual recovery in traffic through this critical maritime chokepoint. The tankers, owned by Japanese companies Nippon Yusen KK and Kawasaki Kisen Kaisha, loaded the crude on March 1 and had been delayed after Iran temporarily shut down traffic in the area.
According to data from Kpler and LSEG cited by Reuters, these tankers collectively carry about 4 million barrels of Saudi crude destined for Japan. This movement follows reports of about 12 million barrels on six tankers having passed through the Strait recently, alongside other chemical, vehicle, and cargo vessels also heading towards Japan.
The Strait of Hormuz remains a vital passage for global oil trade, yet commercial traffic persists at roughly one-third of its pre-conflict levels, which averaged around 84 vessel transits daily. On July 4, only 25 vessels were recorded with active Automatic Identification System (AIS) transmissions crossing the strait. The journey remains hazardous, as some tankers have reversed course after radio warnings from Iran’s Islamic Revolutionary Guard Corps.
Despite these challenges, Saudi Arabia has exported approximately 34 million barrels since a preliminary ceasefire was signed between the U.S. and Iran in mid-June. Additionally, the United Arab Emirates (UAE) has increased its oil outflows through the Strait, hitting record export levels in June.
The overall recovery in maritime traffic through the Strait of Hormuz, however, remains uneven. Reports indicate that several tankers, including oil and liquefied natural gas (LNG) carriers, made unexplained U-turns near the Omani coast over recent weekends, a possible reflection of ongoing security concerns.
Of the vessels that reversed course, four navigated north and exited the strait near Iran-controlled waters, while others stayed along the Oman coast. These navigational behaviours underscore the complexities and risks involved in transporting crude oil through the Strait amid geopolitical tensions.
The latest developments highlight a cautiously optimistic trend toward normalization of oil shipments through one of the world’s most strategically important sea lanes, which significantly affects global energy markets and prices.