A tiny oil lifeline reopens through tense Hormuz after months of chokehold

Summary

Four ships each hauling 2 million barrels of mostly-Iraqi crude have exited since May 10 — a rate close to 2 million barrels a day — according to vessel tracking data compiled by Bloomberg. Still, prior to the war, there were about 20 or so tankers of various sizes crossing the waterway daily. Oil traders are monitoring Hormuz flows closely because the blockage of the waterway has already cut about a billion barrels from global supply. While shipments from countries other than Iran have crept up, those from the Islamic Republic have slumped sharply since an American blockade. Also Read: Two LPG carriers cross Strait of Hormuz, set to reach India this week In recent weeks, some ships have crossed with their satellite signals off, meaning it’s possible the number increases down the line once those vessels re-emerge away from the Middle East. Hormuz has remained largely blocked since the war began in late February and has been subject to an international diplomatic arm wrestle ever since. Crude seen leaving Persian Gulf via the Strait Iran earlier this month laid out an updated process for ships wanting to cross Hormuz that involved dealing with a body called the Persian Gulf Strait Authority. At the same time, the US has maintained a blockade, from the edge of the Gulf of Oman, on Iranian ports. That has slowed maritime traffic in the region, though some vessels have been able to cross thanks to agreements between governments. Still, while a handful of tankers have been able to escape, it’s much less clear whether they’ll be willing to return given the risks to shipping. “There’s been an increase but the levels are so low that it won’t make much of a difference,” said Georgios Sakellariou, a freight analyst at Signal Maritime. “The major issue is that even if all the tankers inside leave, new ones won’t be entering anytime soon.” Of the four ships that departed with their signals on, three loaded crude oil in Iraq. The other is carrying cargoes from the United Arab Emirates and Kuwait, the vessel tracking data show. Also Read: India working on ₹40,000 cr subsea gas pipeline project to help mitigate risks brought to fore by Hormuz blockade Iran said on Thursday that it is now allowing Chinese ships to pass the Strait of Hormuz following discussions with the country’s foreign ministry. A day earlier, the supertanker Yuan Hua Hu became the third Chinese VLCC to cross the waterway. There’s been a similar trend in other markets too, with a series of very large gas carriers adding to the number of crossings in recent days. Tracking the number of ships crossing Hormuz has been complicated by the fact that some vessels have transited while switching off their satellite transponders. Last month, the boss of commodity trader Mercuria Energy Group said the company has been able to get vessels out of the waterway, but declined to elaborate on how. Middle Eastern oil companies, including Saudi Arabia Aramco Trading Co. and the UAE’s state-owned Abu Dhabi National Oil Co. have also moved crude cargoes through the waterway since it was closed, people familiar with the situation said last week. (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)

Perspectives

Iranian Official

The Islamic Republic of Iran has asserted its sovereign authority over the Strait of Hormuz by establishing the Persian Gulf Strait Authority to manage maritime traffic, countering aggressive foreign blockades and interference that began with the war in late February. Despite the US-led blockade targeting Iranian ports and slashing exports, Iranian resistance has sustained limited flows of mostly Iraqi crude at nearly 2 million barrels per day while rejecting external dictates. This defensive posture upholds national rights amid attempts to strangle regional energy routes.

Israeli

Iran's tightened grip on the Strait of Hormuz since late February—via its Persian Gulf Strait Authority and proxy-enabled disruptions—has slashed tanker traffic and cut a billion barrels from global supply, exposing Tehran's intent to strangle energy lifelines as part of its existential campaign against Israel and its allies. This follows the sharp slump in Iranian exports under the US blockade, while limited Iraqi flows persist amid the blockade. From Israel's perspective, such threats demand robust defensive measures to neutralize Iran's proxy networks and secure the waterway against strangulation.

Neutral

Vessel tracking data show four ships carrying about 2 million barrels each of mostly Iraqi crude exiting the Strait of Hormuz since May 10, for a rate near 2 million barrels per day. Pre-war daily crossings averaged roughly 20 tankers of varying sizes. Iranian shipments through the strait have declined sharply amid a U.S. blockade of Iranian ports maintained since the conflict began in late February, while limited crossings by other vessels have occurred under government agreements.

Western

US-led naval forces have sustained a precise blockade of Iranian ports since late February, sharply curtailing Tehran’s crude exports while enabling limited, monitored transits of mostly Iraqi oil at roughly 2 million barrels per day. This targeted enforcement has already removed about one billion barrels from illicit Iranian supply, neutralizing a key revenue stream without broadly disrupting allied Gulf shipments. Iranian attempts to assert control via a new Strait authority and covert transits with AIS off have been effectively countered by coalition monitoring and selective clearance protocols.

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Jun 22, 2026diplomacyUnverifiedUSIsraelIranProxy

US-Iran Peace Deal Live: Iranian President to visit Pakistan on Tuesday as peace talks yield 60-day roadmap

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Advertisement US-Iran peace deal US-Iran Peace Deal Live: Iranian President to visit Pakistan on Tuesday as peace talks yield 60-day roadmap New Delhi,UPDATED: Jun 22, 2026 19:20 IST US-Iran Peace Deal News Live Updates: US-Iran diplomacy gained momentum after a marathon round of talks in Switzerland produced what mediators Pakistan and Qatar described as a roadmap for a final agreement within 60 days.

US Vice President JD Vance said Tehran had agreed to allow nuclear inspectors into the country and work on mechanisms covering frozen Iranian assets, regional ceasefires and the Strait of Hormuz. Vance said discussions on nuclear inspections could begin as early as this week, while technical teams will remain engaged even after Iran's top negotiators returned to Tehran following 18 hours of intensive negotiations.

The talks also established a communication channel to help ensure safe commercial shipping through Strait of Hormuz and a mechanism aimed at preventing renewed fighting in Lebanon between Israel and Hezbollah. Despite the diplomatic progress, tensions remained visible.

Iran had briefly closed the Strait of Hormuz over the weekend, accusing the United States of failing to uphold commitments to halt fighting in Lebanon. However, mediators said discussions were held in a constructive atmosphere and yielded encouraging progress.

Iranian President Masoud Pezeshkian is set to visit Pakistan on Tuesday in a trip expected to focus on bilateral cooperation and follow-up discussions on Islamabad's mediation efforts. Meanwhile, a fragile ceasefire in Lebanon largely held, marking the longest lull in violence in three months of conflict.

Lebanese officials reported near-total adherence to the truce despite isolated incidents, while Israeli leaders insisted any final agreement must ensure Iran cannot use future financial relief to support military activities or regional proxy groups.

Follow IndiaToday.in for the latest updates....Read More Iranian President Masoud Pezeshkian is expected to arrive in Pakistan on a one-day visit on Tuesday. (File Photo: Press TV) 2 Jun 22, 2026 19:20 IST US-Iran Deal: Iranian President to visit Pakistan Iranian President Masoud Pezeshkian will make a one-day visit to Pakistan on Tuesday, Iranian officials said.

Habib Abbasi, director-general of public relations at the presidential office, said the trip will focus on implementing previous agreements and exploring new trade opportunities. Pezeshkian is also expected to "express appreciation" for Pakistan's role in mediating between Iran and the United States, according to Tasnim news agency.

Jun 22, 2026 19:14 IST US-Iran Deal: Here's what happened so far - US Vice President JD Vance said talks with Iran made significant progress, with Tehran agreeing to allow nuclear inspectors, establish mechanisms for handling frozen assets and support efforts to manage regional ceasefires.

- Speaking after negotiations in Switzerland, Vance said discussions on nuclear inspections could begin as early as this week and confirmed that technical talks would continue in the coming days and weeks. - Iran’s senior negotiating team departed Switzerland for Tehran after 18 hours of intensive discussions, while technical experts remained behind to continue work on the Islamabad memorandum of understanding.

- Pakistan and Qatar, which mediated the talks, said Washington and Tehran agreed on a roadmap aimed at reaching a final agreement within 60 days and described the first round of negotiations as encouraging. - The two sides also agreed to establish a mechanism to help prevent clashes in Lebanon and create a communications channel to safeguard commercial shipping through the Strait of Hormuz, a vital route for global oil supplies.

- The talks followed an interim agreement reached last week and continued despite renewed tensions after President Donald Trump threatened military action against Iran and Tehran warned Washington over its rhetoric. - Iranian President Masoud Pezeshkian is scheduled to visit Pakistan on Tuesday for a one-day trip.

Iranian officials said he would discuss bilateral cooperation and express appreciation for Islamabad’s role in facilitating US-Iran diplomacy. - A ceasefire in Lebanon largely held on Monday, marking the longest period of relative calm in nearly three months of conflict between Hezbollah and Israel, although isolated incidents were still reported.

- Lebanese security officials said adherence to the ceasefire had been "almost total" since Saturday evening, despite reports of limited Israeli military activity in southern Lebanon and drone flights over Beirut. - The conflict in Lebanon has remained a major test for the interim US-Iran agreement, with Tehran previously accusing Washington of failing to ensure an end to hostilities and briefly reimposing restrictions in the Strait of Hormuz.

- Vance said progress had also been made toward reducing tensions in Lebanon, while negotiators worked to establish safeguards aimed at preventing future escalation. - Iranian Foreign Minister Abbas Araqchi said Tehran had secured waivers for oil and petrochemical exports, the release of some frozen assets and the launch of a reconstruction and development programme under the broader diplomatic framework.

- Oil prices, which surged after tensions disrupted shipping through the Strait of Hormuz, fell further after the latest round of talks, easing concerns about global supply disruptions. - Pakistani Prime Minister Shehbaz Sharif described the negotiations as constructive and said the first round of talks had concluded successfully, laying the groundwork for a broader peace agreement.

- Israeli officials signalled support for a diplomatic resolution but stressed that any final deal must ensure Iran cannot use financial relief or released assets to fund military activities or regional proxy groups.

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