HOUSTON, June 12 - Roughly 7 million barrels per day of oil are being exported from the Persian Gulf with help from the U.S. military, Energy Secretary Chris Wright said on Friday at an event in Houston.
Wright told attendees that the volume equals about half of the oil flow that had been stuck in the Strait of Hormuz since the U.S.-Israeli war with Iran began. He described a recently initiated military operation intended to move cargoes out of the region.
"We have a military effort that we’ve not talked a lot about, which started more recently to get cargoes out," Wright said.
Wright added that no Iranian crude is currently exiting the Strait. He spoke at a Bloomberg Energy event and said he expects the free flow of all products through the Persian Gulf if a deal is reached. He also stated that, if a deal is not secured, the U.S. military would work to restore the flow.
Market reaction and industry views
The figure of 7 million barrels per day was larger than some in the industry had anticipated. Dan Pickering, chief investment officer at Pickering Energy Partners, said the number exceeded industry expectations.
Oil prices, which Wright and others noted were trading in the roughly $88 range at the time, imply market assumptions that were lower than the reported flow. Rebecca Babin, a senior energy trader at CIBC Private Wealth, said investors had been pricing in only about 3 million to 4 million barrels per day moving through the Strait.
Policy options cited
Wright said some sanctions on Iran could be partially lifted if a diplomatic agreement is achieved. He also suggested a temporary U.S. gasoline tax holiday over the summer as a possible policy tool to help lower pump prices.
The comments linked a security operation at sea with potential diplomatic and fiscal responses on shore, while market participants assessed the implications for oil flows and prices.