TotalEnergies maintains oil transit through Strait of Hormuz despite regional tensions

TotalEnergies CEO Patrick Pouyanné confirmed that VLCC transit through the Strait of Hormuz now costs $20 million due to heightened risk premiums. Despite these costs, TotalEnergies continues to utilize the Strait for Iraqi and Qatari oil flows while simultaneously investing in bypass infrastructure, indicating a dual strategy of maintaining current operations and mitigating future risk. The specific financial terms and timelines for bypass projects remain undisclosed.

TotalEnergies confirms continued oil transit through the Strait of Hormuz from Iraq and Qatar, indicating resilience in critical energy supply chains. Iraqi President Amidi also confirmed authorization for Iraqi oil tankers to transit the Strait, while pledging Iraq will not be used for regional military operations. The durability of this arrangement is contingent on broader Iranian-Iraqi diplomatic alignment.