China oil.....

Iranian oil tankers are rushing out of the Strait of Hormuz

By David Goldman

Intensifying attacks in the Persian Gulf over the past two days and President Donald Trump’s threat to reimpose a US-led naval blockade are motivating Iran to get its oil tankers out of the Strait of Hormuz – quickly.

Iran shipped out 10 million barrels of crude and fuel overnight, according to TankerTrackers, a maritime shipping tracker. That’s a significant ramp-up: Before Thursday, Iran managed to get a total of 60 million barrels of oil out over the past three weeks, according to Windward Intelligence.

On Wednesday, tanker operators got cold feet entering and leaving the strait as the uncertainty about the military situation led many ships to drop anchor. Crossings through the Strait of Hormuz Wednesday fell to 25, down from 49 the previous day, according to MarineTraffic.

Part of the reason for Wednesday’s decline in strait crossings was the fear that vessels entering the region would get stuck there. Most of the crossings Wednesday were west to east (exiting the Persian Gulf).

Other than the United Arab Emirates, which has shipped as much as 65 million barrels of oil after the strait reopened, Iranian exports have surpassed all other oil producers. The regime makes 50% of its revenue off of oil sales, which are crucial to the country’s post-war revitalization.

The reimposition of US sanctions on Iranian oil Tuesday does not appear to be deterring China from buying: Though a shadow fleet of tankers, 32.3 million barrels of Iranian oil are currently headed toward China, according to Windward Intelligence.