Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTTom KoolTue, August 11, 2026 at 4:52 PM GMT+2 6 min readHormuz tensions are flaring again as Iranian exports collapse, pushing Brent toward $87 and raising the risk of another run toward $100.China's Crude Drawdown Puts Iranian Barrels Back in Demand- Shrinking crude inventories in China might spur a buying spree over the upcoming weeks, particularly for Russian and Iranian crude, buoyed by a record-high July stock draw in Shandong. - Chinese teapots are expected to boost their purchases of Iranian oil in the upcoming days as stockpiles in the northeastern Shandong province have dropped by a whopping 35 million barrels in July, equivalent to a 1.1 million b/d draw.- The gradual re-opening of product exports from China is pushing utilization rates amongst independent refiners, with run rates around 50% currently after multi-year highs seen in June-July.- Meanwhile, prices for Iranian barrels are edging higher as new supply from Kharg Island seems to be dissipating – in the first ten days of August, not a single VLCC was seen loading in Iran.- According to Kpler, Iranian crude held in floating storage remains relatively constant around 40 million barrels, double the amount seen in the first weeks of July when navigation was still unimpeded.Market Movers- US energy firms P66 (NYSE:PSX), Kinder Morgan (NYSE:KMI) and HF Sinclair (NYSE:DINO) have jointly agreed to build the $5 billion Western Gateway pipeline system, a key conduit for refined products to California from St. Louis, MO.- UK major BP (NYSE:BP) has agreed to purchase a 70% interest in the Calypso deepwater offshore project in Trinidad and Tobago from Australia's Woodside (ASX:WDS), taking full ownership of the 3.5 TCf asset.- Italian energy giant ENI (BIT:ENI) has signed an agreement with US driller APA (NASDAQ:APA) to become a strategic partner in the latter's Block 6 offshore Uruguay, with ENI funding most of the exploration work planned for 2027.- French upstream specialist Maurel et Prom (EPA:MAU), majority-owned by Indonesia's Pertamina, has agreed to buy the entire South American portfolio of Gran Tierra Energy (mostly in Colombia and Ecuador) for a total consideration of $1.33 billion.- ADNOC, the national oil company of the UAE, has bought 6 VLCCs and 5 VLGCs on the secondary market for $1.3 billion, expanding its shipping capacity as it continues to navigate transits through the Strait of Hormuz.Tuesday, August 11, 2026The rapid slowdown in Hormuz transits, first Houthi casualties in the Red Sea, another bout of escalatory rhetoric from US President Trump, and once again it all seems that there was never really a deal in discussion. ICE Brent has bounced back to $87 per barrel; however, another rally towards $100 per barrel is firmly on the table as Iranian loadings are close to zero in August, raising the risks of Tehran halting Hormuz transits completely.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info