Ship-to-ship transfers keep Gulf oil moving outside Hormuz as direct traffic hits multi-month low

Global oil markets continue to receive substantial shipments despite minimal direct vessel traffic through the Strait of Hormuz, according to maritime tracking data published early on August 26. TankerTrackers reported a minimum of fifteen simultaneous ship-to-ship transfer operations occurring concurrently in the Gulf of Oman, involving approximately 25 million barrels of crude oil and refined products. The originating countries of these cargoes, excluding Iran, constitute nearly the entire Gulf region.

The report suggests that ship-to-ship activity in the Gulf of Oman has become a critical safety valve for Gulf producers seeking to circumvent the most perilous segment of the route. A busy day in the Gulf of Oman, where at least fifteen STS transfer sessions are taking place. Counting 25 million barrels of crude oil, in addition to some refined products. The oil is sourced from almost every country in the region, except Iran.

This adaptation by regional exporters and shippers, six months into the conflict, reflects a shift in strategy as tankers navigate shorter "shuttle" voyages or dark transits (with Automatic Identification System transponders turned off) to move oil to larger tankers stationed outside the chokepoint. This practice echoes a technique long employed by Iran to evade sanctions, now utilized more broadly to maintain the flow of non-Iranian barrels while Iran's exports face intense US pressure and a naval blockade.

Kpler data indicate that Hormuz traffic was at a three-month low, with only two commodity vessels transiting the Strait on Monday, marking the lowest daily tally since early May and well below the recent 10-day average of around 14 vessels.