U.S. Armed Forces targeted 19 violating ships in the Strait of Hormuz on Friday and Saturday. This action came following reports of over 20 million barrels of oil passing through this waterway last week, a figure higher than the pre-war level.
Reviving the Flow of Oil and Gas
Rite, the U.S. Secretary of Energy, emphasized in an interview that the actions of the U.S. Armed Forces have helped revive the flow of oil, gas, and petroleum products from the Strait of Hormuz. This is while, before the war began on February 27, 2025, an average of about 20 million barrels of oil passed through the Strait daily, accounting for about one-fifth of global oil supply.
On October 25, the Islamic Republic of Iran proposed to reopen the Strait of Hormuz in exchange for lifting the maritime blockade, granting exemptions for oil sales, and establishing a ceasefire in Lebanon. This proposal was made under the condition that Donald Trump, the U.S. President, emphasized that the economic pressure from the maritime blockade led to this proposal, which he would not accept.
Impacts on the Global Energy Market
The U.S. Secretary of Energy also announced that the current pressure on energy prices is more due to a lack of refining capacity worldwide than restrictions on oil transfer. He pointed out that Russian refineries have been severely damaged, and the refining capacity of the country has decreased by about 40 percent. Additionally, parts of the refining capacity in the Middle East have gone offline, and its products are no longer being supplied to the market.
Rite criticized the policies of the Joe Biden administration, referencing the closure of more than 12 refineries during his presidency and stating that the current government is working to establish the first new refinery in the U.S. in several decades. This comes as rising fuel prices have put pressure on Republicans ahead of the midterm elections in the U.S.
In recent weeks, the advance of the Houthis in Yemen in areas around the Bab-el-Mandeb Strait and their attacks on Saudi Arabia have increased concerns about the security of energy transfer routes and the outlook for the global oil market. In this context, Rite referred to increasing energy production as a necessity for the economic and industrial advancement of the U.S.
The U.S. Secretary of Energy also addressed the Trump administration's policy towards Venezuela, calling for the country to become one of Washington's allies. He stated that the goal is to create a peaceful and democratic Venezuela that, with increased oil production, provides new investment opportunities for American companies.
Finally, Rite emphasized that the interdependence of global energy markets means that any disruption in global supply affects all countries, but the U.S. suffers less damage compared to other countries.
