2026.05.15

Oil Climbs as Ship Seizure Fears Persist

Oil prices rose on Friday as concerns over ship attacks and seizures in the Strait of Hormuz continued to support the market, with Brent reaching $106.32/bbl and WTI $101.71/bbl. Iran’s Revolutionary Guards claimed around 30 vessels crossed the strait since Wednesday evening, a notable recovery but still far below the pre-war average of about 140 ships per day. Market sentiment remained tense after reports that Iran seized a vessel near the UAE and an Indian livestock carrier sank off Oman earlier this week. Meanwhile, Trump and Xi Jinping continued talks in Beijing, with both sides reportedly agreeing on the importance of keeping the Strait of Hormuz open.

UK Navy Says Commercial Ship Seized Near Hormuz and Heading Toward Iran

A commercial vessel was reportedly taken by unauthorized personnel near the entrance to the Strait of Hormuz and is now heading toward Iranian waters, according to the UK Maritime Trade Operations. The ship was seized while anchored about 38 nautical miles off the UAE coast in the Gulf of Oman, highlighting Iran’s growing control over regional shipping routes.

India Condemns Gulf of Oman Ship Attack After Vessel Sinks

India condemned the attack and sinking of the cargo vessel *Haji Ali* in the Gulf of Oman after the ship caught fire while sailing from Somalia to Sharjah. All 14 crew members were safely rescued by the Omani Coast Guard, according to Indian authorities. The incident adds to growing maritime security concerns linked to the Iran conflict, which has severely disrupted shipping through the Strait of Hormuz.

Iran Escorts Chinese Ships Through Hormuz Amid Trump-Xi Summit

Iran allowed multiple Chinese vessels to transit the Strait of Hormuz under special “Iranian management protocols” during the Trump-Xi summit in Beijing, signaling an effort to strengthen ties with China while resisting US pressure. Iranian media said around 30 ships crossed the strait under IRGC supervision since Wednesday night, following diplomatic engagement between Beijing and Tehran. The move comes after recent tensions involving attacks on China-linked tankers and the seizure of the product tanker *Jin Li*, while Washington continues sanctions and a naval blockade targeting Iranian trade.

Xi Warns Trump Taiwan Missteps Could Trigger ‘Clashes’

Chinese President Xi Jinping warned U.S. President Donald Trump that mishandling Taiwan could lead to “collision or even clashes” between the two countries, calling it the most important issue in U.S.-China relations during their summit in Beijing. Despite the sharp warning, both leaders publicly struck a positive tone, discussing trade, energy, fentanyl controls and Iran, while Trump described bilateral ties as having a “fantastic” future. China also signaled interest in buying more U.S. energy and agricultural products, while the two sides reportedly explored a possible $30 billion tariff-relief framework.

Japanese VLCC Escapes Hormuz After Direct Appeal to Iran

A Panama-flagged tanker managed by Japan’s Eneos safely passed through the Strait of Hormuz, marking the second successful Japan-linked crude shipment since the U.S.-Iran conflict disrupted Gulf oil flows. Japanese Prime Minister Sanae Takaichi said she directly requested Iranian President Masoud Pezeshkian to allow the vessel’s transit, which carried 1.9 million barrels of Kuwaiti and UAE crude and had four Japanese crew members onboard. Japan stressed that no toll was paid to Iran for the passage, while continuing diplomatic efforts to secure the release of 39 Japan-related vessels still stranded in the Gulf.

Vitol Offers Iraqi Basrah Crude Outside Hormuz as Some Cargoes Escape Gulf

Vitol Group has begun offering Iraqi Basrah Medium and Basrah Heavy crude via ship-to-ship transfers off Fujairah, signaling that some Iraqi oil cargoes may now be successfully exiting the Persian Gulf despite the ongoing Hormuz blockade. Iraqi exports have been severely disrupted for months as buyers struggled to secure vessels willing to transit the strait, forcing state marketer SOMO to offer discounts on May-loading cargoes. Recent movements suggest limited progress, including the Kiara M successfully leaving Hormuz with Iraqi crude before transferring its cargo off Oman, although another VLCC, Agios Fanourios I, reportedly carrying 2 million barrels of Basrah crude, was forced to turn back near the U.S. naval blockade line.

OPEC+ Plans Further Quota Hikes Despite Gulf Supply Disruptions

Key OPEC+ members are planning to continue monthly oil quota increases through September, completing the formal return of roughly 1.65m bpd of previously cut production, although many Gulf producers cannot physically deliver the extra barrels due to the Iran war and Hormuz disruptions. The group has already restored about two-thirds of the cuts and is expected to add the remaining volumes in three stages, including a planned 188,000 bpd increase for June. Saudi Arabia, Kuwait, Iraq and the UAE have all suffered major output losses during the conflict, with Saudi production falling to 6.3m bpd in April — the kingdom’s lowest level since 1990 — while global inventories continue to tighten sharply amid the ongoing supply crisis.

Foreign Buyers Take Nearly 40% of U.S. Emergency Oil Release

Nearly 13 million barrels — about 40% — of crude released from the U.S. Strategic Petroleum Reserve (SPR) have been exported to Europe and other overseas markets, underscoring how severely global oil supplies have tightened during the Iran war. The Trump administration pledged to release 172 million barrels from the SPR to ease market disruptions caused by the near closure of the Strait of Hormuz, with 133 million barrels already allocated and major traders like Trafigura securing large volumes. So far, only 31.3 million barrels have physically left storage caverns between March and August releases, including recent shipments such as the tanker *Kyrakatingo* loading 700,000 barrels of Bryan Mound Sour crude.

Eneos to Buy Chevron’s Asia-Pacific Oil Assets for $2.2 Billion

Japan’s largest refiner, Eneos Holdings, agreed to acquire Chevron’s Asia-Pacific refining and fuel retail assets for $2.17 billion in cash, expanding its presence across Southeast Asia and Australia. The deal includes Chevron’s 50% stake in a Singapore refinery along with fuel and lubricant marketing businesses in Singapore, Malaysia, Indonesia, the Philippines, Australia and Vietnam, with completion expected in 2027. The acquisition marks Eneos’ first ownership stake in an overseas refinery and strengthens its position in Singapore, Asia’s key oil trading hub, as the company looks beyond Japan where domestic fuel demand is expected to decline. The transaction follows a broader trend of major oil companies such as Chevron, ExxonMobil and Shell reducing downstream exposure in Southeast Asia.