Published on 6/25/2026
Middle East exports of fuel oil (mazut) rose during June to their highest levels in 4 months, supported by Iraq and Saudi Arabia transferring part of their exports to alternative ports, at a time when shipping traffic through the Strait of Hormuz began to gradually recover following a temporary agreement between the United States and Iran.
Shipping data and market information showed that the region’s exports are likely to reach about 2.4 million tons, or the equivalent of 508 thousand barrels per day, during June, an increase of more than 20% compared to the previous month.
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Despite this increase, exports remain much lower than pre-war levels, when they ranged between 5.5 million and 6 million tons per month.
The improvement in shipping flows through the Strait of Hormuz contributed to an increase in the regional supply of fuel oil, which was reflected in prices in Asian markets, where prices of high-sulfur fuel oil declined in the main trading centers, led by Singapore.
High sulfur fuel oil is used to power ships and generate electricity, and is processed in refineries.
“Fuel oil flows through the Strait of Hormuz are expected to increase within 60 days, but a significant recovery is unlikely,” said Palash Jain, Middle East oil markets consultant at FGE Nexant ECA.
He added that shipping companies will continue to deal with caution due to the uncertainty related to the results of the ongoing negotiations and the sustainability of the temporary peace agreement.
Shipping data showed that the tanker “Gamsonoro”, loaded with about 80,000 tons of Iraqi fuel oil, left the Strait of Hormuz heading to Fujairah, indicating a gradual improvement in transit traffic through the vital sea corridor.
Jin pointed out that there are factors that may limit the increase in exports, including regional balances and the limited ability to increase refinery operating rates, in addition to the high seasonal demand for fuel during the summer.
Iraq and Saudi Arabia are redrawing the export map
The data showed that Syria, Saudi Arabia, and Oman topped the list of exporters of high-sulfur fuel oil from the Middle East during June, while Iraq, Kuwait, Iran, and the UAE were the largest exporters before the war.
Since March, Iraq began exporting fuel oil through the Syrian port of Baniyas, in a step aimed at reducing dependence on the Strait of Hormuz. The quantities exported through this route reached more than 600 thousand tons during June, which is a record level.
Jin said: “Iraq is still focused on diversifying export routes, and the Syrian corridor is a strategic alternative to the Strait of Hormuz.”
Before the war, Iraq relied on the Khor Al-Zubair port to export most of its shipments, but geopolitical developments prompted millions of barrels to be transported by truck through Syrian territory before they were re-exported from the Baniyas port.
In Saudi Arabia, fuel oil exports are expected to exceed 300,000 tons during June, the highest level in 5 months, after part of the supplies were transferred to the port of Yanbu on the Red Sea.
The Sultanate of Oman’s exports are expected to reach about 300,000 tons, which is their highest level in more than two years.
As for Iran, despite the temporary exemption from US sanctions for a period of 60 days under the peace agreement, commercial sources expect Iranian fuel oil exports to remain limited, due to the continuing obstacles associated with banking transactions and international payment mechanisms.
