Two Chinese supertankers have turned back in the Strait of Hormuz amid collapsing U.S.-Iran diplomatic efforts and soaring maritime risks. At the same time, oil benchmarks rose for a fourth consecutive day as global supply tightness was underscored by a drone-induced refinery fire in Russia and new production contracts in Venezuela.
Global market
Brent crude futures extended their gains for a fourth consecutive day, climbing to $91.53 per barrel, while West Texas Intermediate (WTI) rose to $85.47 per barrel. This rally accelerated as transit traffic through the Strait of Hormuz slowed further following the breakdown of the U.S.-Iran ceasefire agreement, with both Washington and Tehran showing no willingness to return to negotiations.
Heightened shipping hazards prompted two Chinese-owned very large crude carriers (VLCCs), Sea V and Hestia, to abort their voyages and make U-turns in the Strait of Hormuz, where they are currently idling in safer waters. In South America, Venezuela’s oil minister Paula Henao announced that state-run PDVSA has signed new production and integrated reservoir development contracts with U.S. companies SLB Ltd. and Hunt Oil Co. to stimulate investment in the nation’s extensive but underdeveloped petroleum reserves.
Russia & CIS
Eurasian fuel supply chains faced fresh disruptions as Head of Bashkiria Radiy Khabirov confirmed that a drone attack ignited a processing unit at a refinery in Ufa. In response, Russian forces launched targeted strikes, hitting fuel and lubricant reservoirs in Ukraine’s Port Chernomorsk on August 19, alongside a cargo ship carrying military supplies in the Black Sea.
In the Zaporizhzhia region, the humanitarian toll of the conflict deepened as ZNPP communications director Evgeniya Yashina reported that the number of nuclear plant employees injured in a Ukrainian strike on an Energodar bus stop has risen to 20. Seeking alternative fuel security in the face of these regional processing bottlenecks, Kyrgyzstan and China signed milestone agreements on the supply of petroleum products on August 19 to establish more resilient overland transport routes.
Armenia
While Armenia reported no direct fluctuations in retail petrol tariffs or natural gas supplies on August 19, the signing of fuel supply agreements between China and Kyrgyzstan—Yerevan’s partner in the EAEU—signals a critical shift toward securing alternative energy corridors across the trade bloc.
The rising global oil prices, with Brent trading at $91.53 per barrel, and ongoing processing threats from the Ufa refinery fire highlight the persistent price volatility of the regional market. To safeguard its economy, Armenia continues to rely on strategic EAEU protocols. These agreements guarantee the uninterrupted, duty-free import of Russian natural gas and petroleum products at fixed, non-market rates, fully shielding domestic retail tariffs from volatile global hubs and preventing exposure to fluctuating international market price assessments.
📊 I can compile a detailed map comparing China’s redirected tanker routes and the new Central Asian fuel corridors to help you analyze how these developments alter EAEU energy security.