Key Takeaways
- U.S. Energy Secretary Chris Wright reported that oil flows through the Strait of Hormuz have rebounded to nearly 9 million barrels per day (bpd), bolstered by U.S. military escorts.
- Total Middle East oil exports, including bypass pipelines, are averaging approximately 15 million bpd, though private tracking firms suggest actual volumes may be significantly lower.
- New Zealand’s July Manufacturing PMI fell to 54.3 from a revised 60.1 in June, indicating continued expansion but at a cooling pace due to Middle East-related cost pressures.
- The U.S. Department of Energy claims "total control" over the strategic waterway, dismissing Iranian attempts to disrupt the global economy.
U.S. Energy Secretary Chris Wright announced on Thursday that oil transits through the Strait of Hormuz are continuing to increase as the U.S. military expands its ability to escort commercial vessels. Wright stated that the seven-day average for oil leaving the strategic chokepoint has reached nearly 9 million barrels per day (bpd). He emphasized that the U.S. is "talking and coordinating with every ship" to ensure the safe passage of energy products despite ongoing regional tensions.
The Secretary further noted that when combined with newly upgraded pipelines and export facilities that bypass the strait, total oil flows from the region are averaging roughly 15 million bpd. Wright accused Iran of attempting to "hold the world economy hostage" by threatening the waterway, which typically handles about one-fifth of global oil consumption. He asserted that the U.S. maintains precise tracking of all daily transits, claiming that over 20 million barrels left the Gulf on Sunday alone, surpassing pre-conflict levels.
However, the administration's figures have met with skepticism from private commodity analysts. Data from firms like Kpler and Commodity Context suggest that sea-borne exports through the strait may be as low as 2.7 million to 7 million bpd, significantly undercutting the government's optimistic report. Analysts noted that while the U.S. claims "100% control" of the route, high fuel prices and market volatility persist as traders weigh the conflicting data.
In economic data from the Asia-Pacific region, New Zealand's manufacturing sector showed signs of cooling in July. The BusinessNZ-BNZ Performance of Manufacturing Index (PMI) fell to 54.3 from June's multi-year high of 59.7 (revised to 60.1 in some reports). While a reading above 50 still indicates expansion, the drop reflects a normalization of activity after an exceptional June.
The survey highlighted a shift in sentiment, with 57% of respondent comments turning negative. Manufacturers cited elevated freight and fuel costs—driven by the Middle East conflict—and domestic election uncertainty as primary headwinds. Despite the headline decline, all sub-indices remained in expansion territory, with production leading at 57.3, though new orders eased to 53.3, suggesting a more cautious outlook for the coming months.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.