Iraqi Crude Tanker Clears Gulf of Oman Amid Hormuz Closure

A very large crude carrier loaded with approximately 2 million barrels of Iraqi crude oil cleared the Gulf of Oman and entered the Arabian Sea on May 24, 2026, bound for China. This transit occurred despite Iran's effective closure of the Strait of Hormuz in late February, which has left the majority of crude tankers stranded inside the Persian Gulf. The vessel's movement represents a rare exception to the ongoing maritime standoff that continues to constrain global oil supply. Investinglive.com reported the development.

Context — why this matters now

Iranian naval forces effectively blockaded the Strait of Hormuz on February 28, 2026, in response to escalating international sanctions. The strait is the world's most critical oil transit chokepoint, handling roughly 21 million barrels per day, or about one-fifth of global seaborne oil trade. Historical precedents include Iranian threats to close the waterway during the 1980s Tanker War, but a full-scale, sustained closure of this magnitude is unprecedented.

The current macro backdrop features Brent crude trading above $90 per barrel, reflecting persistent supply concerns. Global oil inventories have drawn down for five consecutive months. The closure has effectively removed a significant volume of oil from prompt markets, creating a physical supply crunch alongside financial market speculation.

The catalyst for this specific tanker's passage remains unclear. Diplomatic efforts are reportedly underway, with the outline of a deal existing but a signing still days away. This suggests certain vessels may be granted safe passage under specific, undisclosed arrangements, creating a two-tiered market for trapped crude.

Data — what the numbers show

Approximately 85 million barrels of crude oil remain trapped aboard tankers inside the Persian Gulf as of May 24. This represents the cargo of over 40 very large crude carriers unable to depart. Before the closure, average daily transit through the Strait of Hormuz was 21 million barrels.

Iraq, OPEC's second-largest producer, exports over 3.5 million barrels per day, with most flowing through the Persian Gulf. The stranded volume equates to nearly one full day of global oil consumption. The single tanker that cleared the Gulf of Oman carried a cargo valued at roughly $180 million at current Brent prices.

Metric	Pre-Closure (Feb 2026)	Current (May 2026)
Daily Hormuz Transit	21.0M bbl	<1.0M bbl
Trapped Volume	0 bbl	85M bbl
Brent Crude Price	$82.50	$90.25

The price of Brent crude has increased 9.4% since the closure began. This outperforms the Energy Select Sector SPDR Fund (XLE), which is up 6.8% year-to-date.

Analysis — what it means for markets

Energy sector equities with limited exposure to Persian Gulf logistics are primary beneficiaries. Tanker rates for vessels operating outside the region have surged, directly benefiting companies like Euronav NV (EURN) and Frontline plc (FRO). Integrated majors with diverse supply routes, such as Exxon Mobil Corp (XOM) and Chevron Corp (CVX), gain from higher oil prices without the associated transport bottlenecks.

A key counter-argument is that strategic petroleum reserve releases from consuming nations could temporarily offset the supply shortfall, capping extreme price gains. The International Energy Agency has previously coordinated releases of over 60 million barrels.

Market positioning data shows hedge funds have built significant long positions in crude oil futures. Flow data indicates capital is rotating into North American energy equities and midstream pipeline operators like Enterprise Products Partners (EPD), which offer stable throughput unaffected by maritime geopolitics.

Outlook — what to watch next

Market participants should monitor the next OPEC+ meeting scheduled for June 1, 2026. The group may discuss voluntary output increases from members with available capacity, such as Saudi Arabia and the United Arab Emirates.

The key technical level for Brent crude is the psychological resistance at $95 per barrel. A sustained break above this level would signal markets are pricing in a prolonged disruption.

Diplomatic communications between Tehran and Washington remain the primary catalyst for a resolution. Any official confirmation of a deal framework would trigger an immediate repricing of crude futures and energy equities.

Frequently Asked Questions

How does the Strait of Hormuz closure affect gasoline prices?

Retail gasoline prices are a derivative of refined products, primarily gasoline futures (RB1). The closure has increased the global crude input cost for refiners, which is typically passed through to consumers. US national average gasoline prices have increased $0.35 per gallon since late February, reflecting the risk premium. Further increases are likely if the blockage persists.

What is the historical precedent for a Hormuz closure?

There is no direct precedent for a full, sustained closure. During the 1980-1988 Iran-Iraq Tanker War, attacks on shipping reduced traffic but did not halt it. The current event is unique in its scale and duration. The closest analogue is the 1973 Arab oil embargo, which also involved a politically-motivated supply restriction, causing prices to quadruple.

Which countries are most affected by trapped oil shipments?

Asian importers are most exposed due to their reliance on Persian Gulf crude. China, India, Japan, and South Korea collectively import over 12 million barrels per day from the region. These nations may accelerate diversifying supply sources, including increased purchases from Russian, West African, and US crude streams, albeit at higher transport costs.

Bottom Line

A single tanker's transit fails to alleviate the major supply disruption caused by the ongoing Strait of Hormuz closure.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.