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Market Chatter: US Energy Secretary Says Hormuz Crude Flows Recover to 7 Million Barrels Per Day

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US Energy Secretary Chris Wright said that crude oil shipments through the Strait of Hormuz have recovered to about 7 million barrels per day, signaling Washington is prepared to secure the full reopening of the strategic waterway, according to multiple media reports on Friday.

The Hormuz was effectively closed in late February, stranding about 20 million b/d in shipments.

Though several million barrels were subsequently diverted to alternative ports, Wright said about 14 million b/d remained trapped.

"We have a military effort that we've not talked a lot about, which started more recently to get cargoes out," Wright said at the Bloomberg Energy Security Executive Briefing in Houston.

His remarks come amid reports that the US and Iran could reach an agreement to reopen the waterway on the sidelines of next week's Group of Seven summit.

The Department of Energy didn't immediately respond to' request for comment.

Wright noted that a deal could lead to a partial easing of sanctions on Iran, though he emphasized that if negotiations fail, the US military is prepared to act to restore the flow of goods. He reiterated that no Iranian crude is currently passing through the Strait.

The Energy Secretary also said he intends to refill the US Strategic Petroleum Reserve, which was tapped to mitigate the impact of supply shocks amid the ongoing Middle East conflict. Wright ruled out a domestic export ban to bolster local supplies.

Meanwhile, Chevron CEO Mike Wirth offered a more cautious assessment of the situation, questioning the scale of the recovery and warning against drawing firm conclusions from early headlines about a potential truce.

"Our view would be it's probably not quite that much," Wirth said, adding that any prospective peace deal between the US and Iran should be judged only once signed and implemented.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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