US Energy Secretary: 20 Million Barrels of Oil Have Passed Hormuz Strait
US Energy Secretary Chris Wright said Wednesday that 20 million barrels had made it through the Straight of Hormuz in the previous 24 hours. But he says a full reopening of the strait will take time and that the US will not allow Iran to close it again.
Oil Transit Through the Strait of Hormuz
REPORTER:
On Wednesday, a top US official said 20 million barrels of oil had left the Strait of Hormuz in the preceding 24 hours.
Speaking at the Reuters Global Energy Forum, US Energy Secretary Chris Wright said roughly 72 vessels had passed through the waterway in the same period.
The strait has largely reopened following a US-Iran Peace deal after months of closure, and crude oil prices have dropped.
Wright also said that Tehran would not be able to close the Strait in the future, but that getting oil shipments to pre-war levels would take time.
Chris Wright (US ENERGY SECRETARY):
So, the one thing that will delay things a little bit is, unfortunately, the Iranians mined the ship channel. So, all the ships that are going through today are not going through the central ship channel. <cut> . <cut> So, to return to complete normalcy takes a de-mining of the of the strait. And then that's probably a few weeks’ effort.
Iran has said that the pre-war status quo is over, and that it is considering charging ships to pass through the strait.
Some 20 million barrels of crude oil have exited the Strait of Hormuz in the last 24 hours, as tankers continue to transit the key waterway for Middle East supply, US Energy Secretary Chris Wright said on Wednesday, June 24.
Chris Wright (US ENERGY SECRETARY):
I could say roughly 72 ships in the last 24 hours, and 20 million barrels of oil.
Chris Wright (US ENERGY SECRETARY):
Iran will not have the ability to close the Strait of Hormuz going forward. That's a critical thing, that's their key leverage, and we're taking that leverage away from them.
Chris Wright (US ENERGY SECRETARY):
Well, we have above normal flows. We have normal flows today through the strait. 20 million barrels, which...
Hampton: I think it was like roughly 125 ships were coming through instead of 70.
Chris Wright (US ENERGY SECRETARY):
72. Because you have bigger ships now, oil heavy ships. So, the one thing that will delay things a little bit is, unfortunately, the Iranians mined the ship channel. So, all the ships that are going through today are not going through the central ship channel. They're going through either the northern route by the Iranian islands or the southern route with US military escort through the Omani waters. So, to return to complete normalcy takes a de-mining of the of the strait. And then that's probably a few weeks effort.
Chris Wright (US ENERGY SECRETARY):
Critical for us is that even without an agreement with Iran, with the US military and some of the things we've developed, we can assure the flow of energy out of the Gulf with or without an agreement with Iran.
Chris Wright (US ENERGY SECRETARY):
Iran will not have the ability to close the Strait of Hormuz going forward, that's a critical thing, that's their key leverage and we're taking that leverage away from them. And that's US military escorts. That's an ability to prevent their interdiction of ships. They do cause trouble. They are a problem. The better solution is to have an agreement with the Iranians, where they get some benefit and we get a more permanent end to their nuclear program.
US Secretary of State Marco Rubio has said Iran will not be permitted to charge tolls or fees for vessels transiting the Strait of Hormuz under any final agreement with Washington, exposing one of the biggest points of friction in negotiations aimed at ending months of conflict across the Middle East.
The dispute comes after Iran announced it would waive planned transit fees through the strait that crosses through its territorial waters for 60 days while talks with the United States continue in Switzerland, suggesting charges could be introduced once the negotiating period expires.
Washington and Tehran signed a preliminary agreement in Switzerland this week to halt hostilities and launched a 60-day diplomatic process focused on sanctions relief, Iran’s nuclear programme and the future administration of the Strait of Hormuz.
Pakistan, which helped mediate the talks alongside Qatar, has said negotiations to end the four-month US-Israel war on Iran are expected to resume early next week, likely on Tuesday.
The future of Hormuz has already emerged as a key sticking point after Iran effectively closed the waterway during the war, severely disrupting maritime traffic through one of the world’s most important energy chokepoints and causing the price of oil to soar.
In peacetime, one-fifth of the world’s oil and natural gas supplies are shipped for export by Gulf producers through the waterway.
In April, the US imposed a corresponding naval blockade on Iranian naval ports in a bid to stem Iranian oil exports.
