Iran War Reshapes Global Oil Export Routes as Hormuz Flows Plunge

September 6, 2026 at 04:00 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Oil flows through the Strait of Hormuz have fallen to an estimated 6-8 million barrels daily from nearly 20 million before U.S. and Israeli strikes on Iran. Saudi Arabia and the UAE are redirecting exports through Yanbu and Fujairah, respectively, but both face capacity constraints. Global energy import costs rose by $330 billion over six months, with Brent and WTI above $90 per barrel.

Key Facts

Daily crude oil flows through the Strait of Hormuz are estimated at 6-8 million barrels, down from nearly 20 million before the U.S. and Israeli strikes on Iran.
Saudi Arabia reversed the flow of its East-West pipeline to export oil via the Red Sea port of Yanbu.
The UAE redirected crude exports to Fujairah outside the Strait of Hormuz, and ADNOC plans to double the capacity of the pipeline to that port by next year.
Global energy import costs rose by $330 billion over the six months from March to August compared with expectations, according to CREA.
Brent crude and West Texas Intermediate are both trading above $90 per barrel.

Hormuz Flow Collapse

Before the first U.S. and Israeli strikes on Iran, the Strait of Hormuz handled close to 20 million barrels daily of crude oil exports from the Gulf States. Daily oil flows through the chokepoint are now estimated at between 6 and 8 million barrels. Qatar, the region's largest LNG producer, is struggling to export gas after damage to its Ras Laffan hub and a force majeure declaration.

Alternative Export Routes

Saudi Arabia reversed the flow along its East-West pipeline to send oil to the Red Sea port of Yanbu instead of the Persian Gulf. The port of Yanbu lacks the capacity to handle as much oil as the Persian Gulf ports. The UAE redirected its flows to Fujairah, which sits outside the Strait of Hormuz and is less vulnerable to attacks. ADNOC plans to double the capacity of the pipeline carrying crude to Fujairah, but that will take until at least next year.

Import Cost Surge

The global total energy import bill swelled by $330 billion over the six months between March and August from what it was expected to be, according to Finland-based climate outlet CREA. Both Brent crude and West Texas Intermediate are currently trading at over $90 per barrel. Prices are rising further as traders realize that TruthSocial posts by President Trump cannot change the course of the war.