Persian Gulf Oil Exports Top Prewar Levels Despite Iran Attacks on Strait of Hormuz as Brent Hits $110

Persian Gulf oil exports have risen above prewar levels even as Iran wages one of its most intense campaigns of tanker attacks through the Strait of Hormuz, with flows averaging more than 24 million barrels a day in the week ending October 18, according to ship tracker Kpler. That figure exceeds the 23.3 million barrels per day recorded before the war began, and covers both Strait of Hormuz traffic and alternative routes across the region. The Wall Street Journal reported that an improvised shipping system operating under U.S. protection is enabling tankers to keep moving oil despite the attacks.

The resilience in supply has not stopped crude prices from climbing sharply on risk fears. Brent December futures rose 1.34% to $110.02 on Wednesday, while WTI was eyeing the $101.38 resistance level, supported by an API inventory draw of 4.93 million barrels and continued Houthi missile threats against Saudi oil infrastructure. Natural gas slipped below $3.02.

Global shipping costs for oil have surged roughly sevenfold over the past year as a direct consequence of the Middle East conflict, according to Goldman Sachs, and the bank said those elevated costs are likely to persist. The Red Sea disruptions and Hormuz attack risks are forcing tankers onto longer alternative routes, adding freight expense even when physical volumes hold up.

In equity markets, Bajaj Finance fell 2.9% to 929.2 rupees despite reporting a 23.6% year-over-year rise in net interest income, reflecting the broader risk-off pressure from elevated oil prices on emerging market financial stocks. Separately, China's crude import data from Malaysia and Indonesia released by customs showed reported imports from Iran remained at zero.