Escalating Tensions Lead to Halt in Oil Shipments From Iraq

WHO:

CNN - Homayoun Falakshahi, head of crude oil analysis at Kpler

Bloomberg Markets - Two Indian state-run refiners

WHAT:

CNN - More than 200 million barrels of oil locked inside the Persian Gulf flooded out after the Strait of Hormuz reopened.

CNN - Qatar Energy and the United Arab Emirates’ Adnoc discounted their oil by between $6 and $9 a barrel to find buyers.

CNN - More than 18 million barrels of non-Iranian oil remain on tankers outside the Persian Gulf awaiting a buyer.

CNN - Iran managed to get 70 million barrels of oil out of the Strait of Hormuz following a memorandum of understanding with the United States.

CNN - China reduced its purchases of Iranian oil from around 1.5 million barrels per day to 630,000 barrels per day.

CNN - Global oil demand is about 4 million barrels a day lower than at the start of the war.

CNN - China’s crude imports fell below 8 million barrels per day from more than 12 million a day before the war.

CNN - China has 1.9 billion barrels of oil left in its tanks, equating to 117 days’ worth of demand.

CNN - The US Strategic Petroleum Reserve is at its lowest level since 1983.

CNN - The International Energy Agency committed to drawing down global emergency inventories by a record 400 million barrels.

Bloomberg Markets - Indian refiners suspended crude oil loadings from Iraq.

WHERE:

CNN - Strait of Hormuz

CNN - Persian Gulf

CNN - China

Bloomberg Markets - Iraq

WHY:

CNN - Mounting security risks in the Strait of Hormuz make it increasingly difficult to ensure the safety of vessels.

CNN - A decline in Chinese demand for oil has significantly impacted global oil prices.

CNN - Refineries are maxed out due to attacks on 30 Middle Eastern refineries during the war.

HOW:

CNN - Countries are drawing down their own inventories as a response to the current oil market conditions.

(UPDATED July 21, 2026 16:27 UTC)

In a significant development for the oil market, more than 200 million barrels of oil have been released into the Persian Gulf following the reopening of the Strait of Hormuz, while Iran successfully exported 70 million barrels after an agreement with the United States. Meanwhile, both Qatar Energy and the United Arab Emirates’ Adnoc have discounted their oil prices by $6 to $9 a barrel to attract buyers, as global demand remains about 4 million barrels a day lower than pre-war levels. Additionally, Indian refiners have suspended crude oil loadings from Iraq due to increasing security risks in the Strait of Hormuz, further complicating the already strained market.