Hormuz Shuttle Tankers: An Evolving Trend Amid the US-Israel war on Iran

According to a report by Seatrade Maritime News, the disruption of shipping through the Strait of Hormuz is creating a new pattern in the regional oil trade - shuttle tankers are increasingly moving crude from the Persian Gulf to the Gulf of Oman, where cargoes are transferred ship-to-ship (STS) for onward delivery.

The trend is illustrated by the Hong Kong-flagged VLCC Cospearl Lake, which recently reached Dalian, China, carrying about two million barrels of crude loaded through an STS transfer in the Gulf of Oman rather than directly from a Persian Gulf terminal. Such operations allow exporters and buyers to keep oil moving while reducing exposure to the increasingly risky and costly Hormuz transit.

The United Arab Emirates (UAE) has emerged as a key player in this shuttle trade. Regional exporters are using tankers to transport crude through the Strait and transfer it to waiting vessels outside the Gulf. This complements conventional voyages by tankers that continue directly to their destinations.

The Mombasa B provides an important example. The VLCC, chartered by UAE's ADNOC from Sinokor Maritime, entered the Persian Gulf in April and subsequently began shuttling between Gulf loading terminals and the Gulf of Oman. Since June, many of its voyages through Hormuz have been conducted as “dark transits,” with AIS signals switched off.

The risks, however, remain substantial. On July 13, Iranian forces targeted the Mombasa B with cruise missiles while it was transiting the waterway. One Indian crew member was killed and eight others injured. Although the tanker suffered material damage, it remained operational and subsequently resumed Hormuz crossings. The vessel has since been placed on Iran's list of “non-compliant” ships.

The UAE is nevertheless expanding its capacity. In August, ADNOC Logistics & Services announced the acquisition of six additional VLCCs. Other regional exporters, including Kuwait, are also using tankers in shuttle operations. Some ADNOC vessels have reportedly carried Iraqi Basrah crude, indicating that the system is evolving into a wider regional network rather than serving only UAE exports.

Kpler data shows that Persian Gulf crude and condensate loadings reached about 5.8 million barrels per day in August, including Gulf of Oman STS transfers, and have risen toward 8 million bpd in September. Iraq has also reportedly offered buyers the option of collecting crude through STS transfers outside Hormuz.

Yet shuttle tankers remain a wartime workaround rather than a replacement for normal trade routes. They require additional vessels, increase costs and operational complexity, and remain vulnerable to attack. With Iranian oil exports reportedly falling sharply and tensions continuing around the Omani corridor, Tehran may have greater incentive to disrupt these alternative supply chains.

The emerging shuttle trade therefore demonstrates the adaptability of the global oil market—but also highlights how deeply the Iran war has altered the economics, logistics and security of energy transportation through the Gulf.