Trench warfare of Gulf oil tankers: why crude oil prices drop but fuel prices do not

The Middle East is exporting more oil than before the conflict between Israel and the U.S. against Iran began. The Strait of Hormuz is crucial for this increase, allowing 70% of oil to flow again. U.S. naval operations protect tankers crossing the strait at night, using stealth tactics to avoid detection by Iranian forces. The risks are high, with increased salaries for crews as incentives. After passing Hormuz, oil is transferred to larger tankers offshore. However, the global VLCC fleet is insufficient for demand, leading to skyrocketing shipping costs. This situation keeps oil prices elevated despite increased exports, as transportation remains prohibitively expensive.