Dr. Karen E. Young of the Middle East Institute stated that diversions of Asia-bound tankers away from the Bab el-Mandeb Strait will add about 60 days of transport time, requiring ship-to-ship transfers or pipeline feeds to navigate the Suez Canal. Windward tracking data shows Red Sea transits are a fraction of normal levels, and the U.S. Department of Energy reported that LPG and refined product exports from the Gulf remained at less than half their pre-war levels in June, while crude flows reached nearly three-quarters of their February rates. Andy Lipow of Lipow Oil Associates warned that a prolonged disruption drawing commercial inventories to minimum operating levels would cause a price spike.
Context
The article attributes the current sub-$90 price to a pause in strikes, which aligns with the third night of halted US-Iran attacks cited earlier in the day and ongoing diplomatic signals .