Crude flows through Hormuz edge back toward pre-war levels as diesel tightens

Russian refinery attacks and constrained shipments keep diesel tight, and a planned 40,000-ton Russian diesel shipment to the US is drawing political criticism.

Crude flows through the Strait of Hormuz are recovering toward pre-war levels. Aramco said its Yanbu and Shaybah sites show no damage, after weeks of mine strikes, fires and missile intercepts near the strait. Yanbu's refineries have anchored Saudi Arabia's crude exports since the strait shut.

Diesel is a different picture. Russian refinery attacks and constrained shipments keep the market tight even as crude eases. A planned 40,000-ton Russian diesel shipment to the US has drawn political criticism. Trump had earlier pledged that Russian barrels would bring relief.

On reopening, a cleric in Khuzestan who represents Iran's Supreme Leader said any reopening must happen within Iran's arrangements and conditions. The sequencing dispute has stalled every national-level proposal since late September. Tehran is demanding that the blockade lift first.

The easing in crude cuts against a run of mine strikes, tanker fires and sinkings logged through mid-October. Washington and Tehran have repeatedly offered conflicting volume figures for the strait. With crude transit recovering and diesel still tight, pressure on the wider market now runs through fuel costs, not through the risk premium in oil prices that has dominated coverage of the strait.