For a few days, the world’s focus was on the Strait of Hormuz, the 104 mile (167 kilometer) waterway that is a vital conduit for global oil shipments. Even if tensions re-escalate in the Middle East, US refiners have less to worry about than they did in the past. They don’t rely as much now on crude from the region since the shale revolution caused domestic production to boom. If Arab Gulf shipments were to be curtailed, West Coast refiners would be the most exposed. They imported over 20% of their crude from Iraq in 2024.
