Key facts
- Asian refiners are offering Middle Eastern crude to the U.S. West Coast.
- Supply from the Persian Gulf is increasing due to the reopening of the Strait of Hormuz.
- Asian buyers have sufficient crude supplies for the next two months.
- Middle East crude production has rebounded significantly.
- Iran has resumed oil loadings from Kharg Island.
Iraq is facilitating the movement of 14 million barrels of oil through the Strait of Hormuz. Some Asian refiners are now redirecting Middle Eastern crude cargoes to the U.S. West Coast as supply from the Persian Gulf rises with the tentative reopening of the Strait of Hormuz. Asian buyers have secured sufficient non-Middle Eastern crude for the next two months, reducing their immediate need for Middle Eastern supplies. Middle East crude production has rebounded, with Iran resuming loadings from its key oil export port after a U.S. sanctions waiver.
Hawaii has not imported crude from the Middle East since 2018, and California has not received it since the end of 2025, according to estimates. Asian refiners had previously increased purchases of U.S. crude to compensate for lost Middle Eastern supply. Now, with Middle Eastern grades becoming more competitive than U.S. benchmark WTI, and with inventories at Cushing, Oklahoma, and the Strategic Petroleum Reserve at multi-decade lows, excess supply is being offered to the United States.