Ship-to-Ship Oil Transfers in Gulf of Oman Decline Amid Heightened Security Risks

A crucial method for exporting crude oil from the Gulf, ship-to-ship (STS) transfers in the waters outside the Strait of Hormuz, has slowed markedly following a recent wave of attacks on commercial vessels attributed to Iranian forces. The slowdown, confirmed by satellite imagery and maritime sources, signals growing risk aversion among shippers in a vital global energy corridor.

Transfer Activity Plummets

Data indicates a sharp drop in the volume of these offshore transfers, which allow tankers to load crude without navigating the contentious Strait of Hormuz.

• Satellite imagery from July 18 reviewed by Reuters showed just one pair of tankers engaged in an STS transfer off the coast of Oman, down from three pairs observed on July 11.
• Two maritime sources familiar with the operations told Reuters that only two or three such transfers were thought to have occurred in recent days.
• Traffic through the strait itself has also fallen. The number of supertankers—each capable of carrying up to 2 million barrels of oil—transiting the waterway dropped to an average of two per day last week, down from five the previous week, according to ship broker Clarksons.

A Critical Workaround Under Threat

The STS transfer system became a key logistical workaround after the conflict with Iran began in late February, enabling the continued flow of oil exports. The U.S. military had been assisting vessels through a secretive operation, which helped export tens of millions of barrels and dampened the impact on global energy prices.

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However, sources told Reuters last week that some shipping companies are now avoiding the U.S.-guided transit scheme due to mounting safety concerns. The development follows a statement from Iran’s Revolutionary Guards on Monday, which claimed two oil tankers had "exploded" after attempting to use an "unsafe" route through the strait.

US Pledges to Secure Passage

Despite the disruptions, U.S. officials maintain that energy flows are being secured. U.S. Energy Secretary Chris Wright said Sunday that Washington would continue to assure traffic through the strait, adding that public ship tracking data was "incorrect."

Wright stated that the current seven-day average flow is just under 14 million barrels per day when combining waterway traffic and bypass pipelines. He characterized this volume as "two-thirds of pre-conflict traffic" but "dramatically up" from levels seen in March.