Oil Flows Through Strait Of Hormuz Recover To 10 Million Barrels A Day As Prices Dip

According to a U.S Official, the oil flows through the Strait of Hormuz have almost returned to pre-war levels after President Donald Trump signed an interim peace agreement with Iran.

The jump in trade occurred because Washington stepped in and ended the war, which had led to a surge in oil prices globally, the official added.

Before the U.S-Iran war, the strait handled around 20% of global oil and natural gas, amounting to 20 million barrels a day.

At present, around 10 million barrels pass through the strategic waterway daily, along with an additional 5 million through alternative routes, bringing the total flow to almost pre-war levels.

The volume of trade has shocked Iranian leaders since this translates to a diminishing capacity to disrupt the waterway.

This is what led Iran to attack ships in the waterway recently, the official said.

However, Iran will not give up so easily, as its chief negotiator, Mohammed Bagher Ghalibaf, stated on state television, “Sovereignty over the corridor belongs to Iran and Oman.”

This view is in contrast to the reality of heightened traffic in Hormuz.

Additionally, President Trump and Secretary of State Marco Rubio have said that tolls and maritime service fees are not acceptable in the final agreement.

U.S envoy Steve Witkoff and Jared Kushner will fly to Qatar this week for indirect negotiations over Iran’s nuclear program and its influence over Hormuz.

America has told Iran to adhere to the agreement signed between them and ensure the unrestricted passage of ships through Hormuz.

The memorandum provides for toll-free transit of ships during the dedicated 60-day window, though future arrangements are open for debate.

Iran has not publicly agreed to the American conditions regarding the strait and expert say that it might try to delay negotiations to weaken Trump’s ability to secure concessions.