Middle East Oil Leverage is Reducing
Matching the prewar average when Iran is excluded, at least 16.5 million barrels per day of crude oil left the Strait of Hormoz region between September 1 and 28, says Oil Price.com 10/3/2026. Although crude levels have risen, bottlenecks at refineries have caused a global spike, in particular, in diesel prices that persist. In addition, European Union figures as well as United States issues, show diesel pump prices at record levels despite the recovery in oil exports.
For now, the evidence points to a gradual erosion rather than an absolute disappearance of Iranian leverage. So, for the time being, while ships still require military protection, unusual routing and costly workarounds to move that oil, Hormuz remains a thorn in the side of oil distribution and pricing.
Nevertheless, pundits believe this is what has kept oil per barrel below $100. And, ultimately, as the world reduces its dependency on Irania oil, this may all end up being a dramatic boost to the world economies.
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Russell E. Towne, LPL Financial Advisor, is a registered representative with and Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC.