Middle East crisis choked one of the world’s busiest oil pipelines for over 100 days, sending ripples to economies across the globe. As energy shipments fell, many players opted for a range of tactics to keep the shipments flowing. The US adopted Iran’s playbook. Using a method long associated with Iran’s sanctions-busting efforts, the United States military has been overseeing secretive ship-to-ship oil transfers to keep Gulf energy exports moving, according to sources cited by Reuters. The transfer system is fully controlled by the US military which was involved with aerial surveillance, compliance checks and monitoring rather than naval escorts.
How US kept oil flowing
The operation began in early May and involved smaller tankers carrying oil through the Strait of Hormuz before transferring it to larger vessels waiting offshore. These transfers took place at two hubs: Fujairah in the United Arab Emirates and another near Oman’s port of Sohar. Since the operations began, at least 116 vessels had been involved in the transfers.According to the sources, tankers first gathered at designated meeting points before approaching the strait. Their departures were staggered so that ships remained around 3,000 to 4,000 metres apart. Some said that the vessels had to switch off their transponders and dim lights during the journey.The ships move through a series of checkpoints that allow the US military to monitor their progress.After passing through the strait and moving beyond the zone claimed by Iran, the smaller tankers pull alongside larger receiving vessels, many of them Very Large Crude Carriers (VLCCs). The oil transfer takes between 24 and 40 hours to complete. Once emptied, the smaller ships head back through the strait, while the fully loaded VLCCs continue towards international markets.
The system relies on a small number of shipping companies willing to sail through the strait despite the Iranian blockade. Operators wanting to take part first went through compliance checks before receiving transit slots. The process includes submitting information to the US Navy’s Naval Cooperation and Guidance for Shipping office in Bahrain.
Operation by the numbers: Vessels, risks and more
By Tuesday morning, satellite images showed 12 pairs of ships positioned side by side in the Gulf of Oman, with eight pairs operating off Sohar and four near Fujairah. The operation appeared to reach its busiest point on June 11, when 17 pairs of ships were carrying out transfers at the same time across the two locations.Details of the large-scale oil transfer operation, including how it works and the role of an Apache helicopter that Iran shot down on June 9, went unreported. Though the exact role of the helicopter is not yet known, satellite images showed six pairs of tanker ships near Sohar on the day the helicopter was downed.Reuters reviewed more than a dozen satellite images taken between May 2 and June 11 showing transfers involving Gulf state-owned tanker fleets and internationally operated vessels receiving the cargo. Shipping data from LSEG and Kpler also showed repeated meetings between tankers operating in the area during that period.Based on the satellite imagery, Reuters estimated that at least 90 million barrels of crude oil and petroleum products may have moved through this offshore network since early May. The figure remains small compared with the roughly 20 million barrels that passed through the Strait of Hormuz each day before the conflict.But the arrangement carries clear risks.Shipping industry officials said this increases the risk of collisions, especially as ships travel at night without lights and at speeds that make it harder to change course quickly.Iran effectively closed the Strait of Hormuz in response to the US-Israeli war. Around a fifth of the world’s oil consumption normally passes through the route. The disruption created what the report described as the biggest global energy supply shock in history and fuelled inflation worldwide.The transfer system appears to be part of efforts by the administration of US President Donald Trump to restore the movement of oil from the Gulf. Earlier this week, Trump said that the Strait of Hormuz would reopen on Friday under a framework peace deal with Iran announced this week, although details remain unclear.
