U.S. Energy Exports Hit Record as Hormuz Closure Spurs Demand Amid Iran War

The closure of the Strait of Hormuz amid the Iran war has pushed U.S. energy exports to record levels.

According to Yonhap News Agency and The Wall Street Journal, Asian and European buyers cut off from Middle Eastern supplies are turning to U.S. crude oil and liquefied natural gas, or LNG.

Last week, U.S. exports of crude and petroleum products averaged 12.9 million barrels a day, a record high. U.S. exports of crude and LNG to Asia in March and April rose about 30% from a year earlier.

The surge reflects the Hormuz blockade, which has disrupted purchases of Middle Eastern energy. Countries long dependent on the region have had little choice but to seek U.S. supplies.

It is unclear whether the shift will last after the war. Many Asian refineries are designed for Middle Eastern crude, and the United States cannot increase exports without limit.

Tsuneo Watanabe, a researcher at the Sasakawa Peace Foundation, a Japanese think tank, said, “If the Strait of Hormuz reopens and Middle East energy prices return to normal, U.S. crude and gas will no longer be attractive.”