US Energy Secretary Chris Wright told global oil markets on September 13 to stop pricing in a diplomatic breakthrough with Iran over the Strait of Hormuz, warning that one isn’t coming anytime soon. The strategic waterway, which normally handles 17 to 20 million barrels per day, has seen flows fluctuate between 7 and 11 million barrels daily, averaging over 9 million under current US naval escort. Alternative shipping routes are handling roughly 10 million barrels per day, but pipeline capacity has physical limits. Negotiations between Iran and Gulf nations are scheduled for September 14-15 in Oman to discuss temporary shipping arrangements, though Washington appears skeptical about meaningful near-term outcomes.
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