A ceasefire agreement between the US and Iran has boosted market expectations for the reopening of the Strait of Hormuz. Middle Eastern oil producers have begun requesting crude loading plans from Asian refiners to prepare for the resumption of oil exports. However, Iran has not yet lifted its blockade of the strait, and attacks on Saudi energy infrastructure are also posing new constraints on supply.
According to media reports on Friday, three people familiar with the matter revealed that Middle Eastern oil producers have requested Asian refiners to submit crude oil loading plans for April and May in preparation for the eventual reopening of the Strait of Hormuz. Saudi Aramco, the world's largest oil exporter, has notified customers to submit their demand plans for loading cargoes from the ports of Yanbu and Ras Tanura in May.
However, the official Saudi Press Agency (SPA) quoted an energy ministry official as saying that attacks on Saudi energy facilities have led to a reduction in the country's oil production capacity by approximately 600,000 barrels per day and a decrease in the throughput of the East-West pipeline by about 700,000 barrels per day, casting a shadow over expectations for a near-term recovery in supply.
According to Xinhua News Agency, Iran's Supreme Leader Mujtaba stated on the 9th that Iran would not let any aggressor go unpunished and would pursue compensation for war damages and the blood of martyrs. The management of the Strait of Hormuz will also enter a new phase.
<h2>Ceasefire Boosts Expectations, Strait Blockade Yet to Be Lifted</h2>
The ceasefire agreement announced by the US and Iran on Wednesday has fueled market expectations for the reopening of the Strait of Hormuz. The Strait of Hormuz is a critical chokepoint for global energy transport; before the conflict, approximately 20% of the world's crude oil and liquefied natural gas (LNG) supply passed through it.
However, according to media reports, Iran has not yet shown any signs of lifting its near-total blockade of this vital waterway. Energy prices have risen sharply since the implementation of the blockade.
Three sources familiar with the situation stated that the loading plans requested by oil-producing nations from Asian refiners are in preparation for the eventual resumption of exports, rather than signifying that exports have already resumed.
<h2>Saudi Aramco Resumes Customer Nomination Process</h2>
According to two sources, Saudi Aramco has requested customers to submit demand nominations for loading cargoes from the ports of Yanbu and Ras Tanura in May. One source pointed out that the port of Ras Tanura is located in eastern Saudi Arabia and vessels must pass through the Strait of Hormuz to depart; therefore, the May export plans from the eastern port are contingent on the reopening of the strait.
Previously, Saudi Aramco notified buyers last month that crude oil loading in April could only be conducted at the western port of Yanbu on the Red Sea. The producer is currently transporting crude oil to the port of Yanbu via the East-West pipeline to maintain external exports.
<h2>Saudi Infrastructure Damaged, Supply Recovery Faces Uncertainties</h2>
Meanwhile, new uncertainties have emerged on the Saudi energy supply side. According to reports, official sources from the Saudi Ministry of Energy stated that attacks on Saudi energy facilities have caused a reduction in the country's oil production capacity of approximately 600,000 barrels per day and a drop in East-West pipeline throughput of about 700,000 barrels per day.
The East-West pipeline is currently Saudi Arabia's core channel for maintaining crude oil exports while bypassing the Strait of Hormuz. The damage to the pipeline's capacity means that even if the blockade of the strait continues, Saudi Arabia's ability to export via western ports is significantly restricted. This situation adds further pressure to the global crude oil supply outlook and keeps investors cautious about short-term trends in the energy market.

The US-Iran talks are about to be held in Islamabad, the capital of Pakistan. Pakistan has activated a red alert, deploying over 10,000 military and police personnel to tightly control key areas and ensure the security of the talks. Do you think this crucial meeting can ease tensions in the Middle East?

The US-Iran talks are about to be held in Islamabad, the capital of Pakistan. Pakistan has activated a red alert, deploying over 10,000 military and police personnel to tightly control key areas and ensure the security of the talks. Do you think this crucial meeting can ease tensions in the Middle East?

With US-Iran negotiations imminent, where is the situation in the Middle East headed?

603353

A US-Iran ceasefire has ignited expectations for the reopening of the Strait of Hormuz. Saudi Aramco has issued May loading nomination notices to Asian refiners, but there are no signs yet of the Iranian blockade easing. Compounding the situation, attacks on Saudi energy facilities have slashed production capacity by 600,000 barrels per day and reduced East-West pipeline throughput by 700,000 barrels per day—threatening the sole export lifeline that bypasses the strait and injecting fresh uncertainty into global crude supply prospects

- The recent U.S.-Iran ceasefire agreement has increased expectations for the reopening of the Strait of Hormuz, leading Middle Eastern oil producers to request April and May crude loading plans from Asian refineries.  
- However, Iran has not lifted its blockade on the strait, and recent attacks on Saudi energy infrastructure have resulted in a significant reduction of the country's oil capacity by approximately 600,000 barrels per day.  
- These developments have introduced uncertainty into the oil supply outlook, keeping investors cautious about the energy market in the short term.

Wallstreetcn

SPDR O&G Ex & Prd

BP p.l.c.

HSPC

VG Energy

Report: Middle Eastern Oil Producers Request April and May Crude Loading Plans from Asia, Preparing for Strait of Hormuz Reopening