Shipping data showed Gulf states boosted crude oil and condensate exports in the first half of July to their highest levels since before the outbreak of the Iran War in late February, but flows through the Strait of Hormuz are now slowing as fighting escalates.

Data from Kepler showed that oil and condensate exports from Saudi Arabia, the UAE, Iraq, Kuwait, and Iran rose by about 16 percent from the daily average for the full month of June to reach 12 million barrels per day in the first half of July.

Vortexa estimated exports during this period at a higher level of 13.06 million barrels per day.

Kepler said the increase in the first half of July was led by Saudi Arabia, Iran, and Iraq, while Vortexa said in its estimates that Iraq recorded the largest monthly increase, while UAE exports fell from record levels in June.

The rise in Gulf exports pushed oil prices down as supply concerns eased after the United States and Iran reached a temporary agreement in mid-June to reopen the strait, the world's most important shipping route for oil and gas, and to seek a comprehensive solution to end the war.

The temporary agreement collapsed in early July due to disagreements over management of the waterway.

Red Sea Concerns

Data showed that shipments passing through the Strait of Hormuz are indeed declining as strikes from both sides escalate, falling to only three bulk carriers on Thursday, the lowest number of transiting ships per day since May.

Johannes Raubal, an analyst at Kepler, told Reuters: 'We are seeing a slowdown in activity, which means countries will have to cut production, reducing the amount of crude oil shipments.'

Even after the recovery, exports remained about 32 percent below the pre-war peak in February of 17.6 million barrels per day.

Saudi Arabia diverted most of its energy exports to the Yanbu port on the Red Sea. Kepler data showed that 75 percent of the kingdom's crude oil and condensate exports, amounting to 5.29 million barrels per day, went through Yanbu since the start of July.