Key facts
- Crude and product flows out of the Gulf of Oman dropped to 9.1 million barrels a day in the past couple of days.
- Weekly average flows through the Strait of Hormuz slipped to 13.5 million barrels a day, down from a peak of 17 million.
- Two Emirati container ships were struck and sank in the Strait of Hormuz.
- Asian LNG prices hit their highest level since December 2022.
Oil prices climbed as Iranian drone attacks on commercial ships in the Strait of Hormuz threatened Middle East energy exports. Two Emirati container ships were struck and sank in the waterway, contributing to a drop in crude and product flows exiting the Gulf of Oman to 9.1 million barrels a day over the past couple of days, down from a peak of 17 million barrels a day in early October.
Attacks in the Strait of Hormuz and the Gulf of Oman are being reported at their highest intensity since the start of the conflict, with Iran reportedly employing a new strategy involving spotters in small boats. These attacks have had a clearer negative impact on traffic via Hormuz in recent days. Separately, attacks have also continued in Saudi Arabia, with reports that Aramco's HQ was targeted.
Asian liquefied natural gas prices have hit their highest level since December 2022 due to these attacks and Europe's winter outlook, though LNG flows out of the Gulf of Oman are holding up at approximately 25% of pre-conflict levels.