IEA: Gulf Oil Shipping Costs Top $37 Per Barrel, Five Times Pre-War Levels
The International Energy Agency reports that shipping crude from the Middle East Gulf to Asia has risen above $37 per barrel, more than five times prewar levels. Middle East oil shipments averaged more than 24 million barrels per day in the week ending October 18, exceeding the prewar average of 23.3 million barrels per day, supported by pipeline exports, short-haul tanker shuttles through Hormuz and offshore ship-to-ship transfers under U.S. military protection. The share of the region’s crude exports bypassing Hormuz rose from about 17% before the war to 40% by September, while approximately 30 attacks on vessels were reported in October.
Why it matters: The shift shows that energy security in the Gulf now depends on costlier and more fragile logistics even as export volumes recover.