Flows through the Strait of Hormuz may be starting to improve, according to
Michael Wan of MUFG Bank. In a research note, the senior currency analyst said
tankers appear to be testing an alternative exit route by sailing closer to the
southern side near Oman.
Wan also noted that Iran announced over the weekend that Iraq is now permitted
to export oil via the strait. This development could potentially bring an
additional three million barrels per day to the market, though he cautioned that
there are still “many unknowns” surrounding how Iran defines “Iraqi oil.”
