Middle East Oil and LNG Producers Persist with Loadings Amid Ship Attacks: What It Means for Regional Energy Investors and Businesses
Middle Eastern energy producers are continuing to load oil and liquefied natural gas (LNG) despite recent attacks on ships in the Strait of Hormuz and renewed tensions between the U.S. and Iran, according to shipping data.
Following attacks on a container ship last Thursday and an oil tanker on Saturday, energy shipments through the strait temporarily slowed as retaliatory strikes intensified, putting strain on Washington and Tehran’s interim peace agreement. However, on Sunday, a U.S. official announced that both countries have agreed to cease hostilities and resume negotiations over the critical maritime route.
On Monday, a fourth Very Large Crude Carrier (VLCC), capable of carrying two million barrels of oil, was observed loading at Saudi Arabia’s Ras Tanura terminal, according to LSEG data. This activity continued despite a helicopter crash on Sunday involving the company, which resulted in 14 fatalities. The cause of the crash remains unknown.
Data also indicated that three other VLCCs loaded oil at the terminal over the weekend and switched off their transponders — known as “going dark” — as a precaution while navigating the Gulf to reduce the risk of attack. One of these supertankers was seen exiting the strait on Monday and is now en route to Japan. Additionally, two VLCCs entered the strait on Sunday and have since docked at a terminal in the United Arab Emirates to load crude oil.
Saudi Aramco declined to comment, while Abu Dhabi National Oil Company (ADNOC) stated that it does not disclose information regarding the positions or routes of its vessels as a matter of company policy.
Iran is also stepping up oil loading activities after the U.S. granted a 60-day waiver on sanctions affecting its exports. For the first time in nearly a week, Tehran simultaneously loaded oil at both export terminals on Kharg Island last Saturday, according to maritime intelligence firm Windward. Kpler data showed Iranian-flagged VLCCs, Dan and Hawk, entering the strait on Saturday, while approximately eight million barrels of crude from the UAE and Qatar were transported out on four VLCCs over the weekend. The National Iranian Oil Company was not immediately available for comment.
The increase in oil exports from the Gulf region — responsible for about one-third of global oil supplies — has contributed to a decline in worldwide oil prices, with Brent crude dropping 10.6% last week for its third consecutive weekly loss. Nevertheless, recent weekend strikes caused prices to rebound on Monday.
Tony Sycamore, an analyst at IG Markets, commented, “If the Strait experiences an uneven reopening in the coming weeks and months, crude oil prices here are relatively fair with a downward bias. However, if risk escalates and these flare-ups lead to broader conflict, current prices would be significantly undervalued.”
In the liquefied natural gas sector, two additional ballast LNG tankers appeared west of the strait on June 26 after turning off their transponders. Meanwhile, two loaded LNG carriers have exited the Strait of Hormuz. The tanker Al Kharaitiyat is heading to Kuwait following loading at Qatar’s Ras Laffan terminal, while another QatarEnergy-controlled vessel, Al Kharsaah, remains offshore Qatar. ADNOC’s Mraweh, which loaded LNG at the UAE’s Das Island on June 21, is en route to deliver cargo to India’s Dahej terminal on July 5. Additionally, the QatarEnergy-operated Al Hamla, loaded at Ras Laffan on June 18, is expected to arrive in China by July 3.
QatarEnergy has not responded to requests for comment.
This ongoing activity underscores the strategic importance of the Strait of Hormuz in global energy markets amid the complex geopolitical dynamics in the region.
Special Analysis by Omanet | Navigate Oman’s Market
The continued resilience of oil and LNG shipments through the Strait of Hormuz amid regional tensions signals ongoing demand and strategic importance of Gulf energy exports, presenting both risks and opportunities for Oman. Businesses in Oman should brace for potential supply chain disruptions but also explore investment in security and logistics solutions to capitalize on steady export flows. Smart investors and entrepreneurs must monitor geopolitical developments closely to navigate price volatility and position themselves advantageously in the energy market.
