Two Chinese Supertankers Exit Strait of Hormuz with 4 Million Barrels of Oil
Vessels trapped since start of US-Israeli war on Iran depart as diplomatic signals raise hopes for conflict resolution
SINGAPORE — Two Chinese Very Large Crude Carriers (VLCCs) carrying approximately four million barrels of Middle Eastern crude oil successfully exited the Strait of Hormuz on Wednesday, according to shipping data from LSEG and Kpler, ending a more than two-month wait in the Persian Gulf since the outbreak of the US-Israeli war on Iran .
The vessels’ departure, which followed a transit route prescribed by Iranian authorities near Larak Island, came as US President Donald Trump and Vice President JD Vance made optimistic public statements about the prospects for a diplomatic agreement with Tehran . Oil prices eased on the positive signals, with Brent crude falling to as low as $110.16 per barrel .
The Vessels and Their Cargo
Two Chinese-operated supertankers, trapped in the Gulf since the conflict began on February 28, have successfully navigated the strategic waterway using a route designated by Iranian authorities .
| Vessel | Flag | Operator/Cargo Owner | Cargo Volume | Load Date | Cargo Origin | Destination | Expected Arrival |
|---|---|---|---|---|---|---|---|
| Yuan Gui Yang | Chinese-flagged | Unipec (trading arm of Sinopec) | 2 million barrels | February 27 | Iraqi Basrah crude | Shuidong Port, Maoming, Guangdong province | June 4 |
| Ocean Lily | Hong Kong-flagged | Sinochem | 2 million barrels (1m Basrah, 1m Qatari al-Shaheen) | Late February/early March | Iraqi Basrah and Qatari al-Shaheen crude | Quanzhou Port, Fujian province | June 5 |
Sources: LSEG, Kpler shipping data
The Yuan Gui Yang, a 319,702 dwt VLCC owned by Cosco Shipping Energy Transportation, loaded its cargo of Iraqi Basrah crude on February 27—just one day before the United States and Israel launched coordinated strikes against Iran .
The Hong Kong-flagged Ocean Lily (299,170 dwt), operated by Sinochem, loaded one million barrels each of Qatari al-Shaheen and Iraqi Basrah crude between late February and early March .
According to shipping data, both vessels used the transit route close to Larak Island prescribed by Iranian authorities, which runs north of the internationally designated traffic separation scheme (TSS) . They stopped transmitting AIS signals as they headed into the Gulf of Oman—a common practice among vessels navigating the conflict zone .
Additional Tankers Exiting the Gulf
The Yuan Gui Yang and Ocean Lily are not the only vessels to have escaped the Gulf bottleneck. Last week, another Chinese VLCC, the Yuan Hua Hu, exited the strait carrying two million barrels of Iraqi oil and headed for eastern China’s Zhoushan Port . They are among a handful of supertankers carrying Iraqi crude that have exited the Persian Gulf this month .
The vessels’ ability to transit the strait comes after more than two months of effective paralysis of normal commercial shipping through the waterway, which typically handles approximately 20 percent of the world’s oil supply. Hundreds of tankers have been blocked from leaving the Gulf since the war began, creating what analysts describe as the worst-ever disruption to global energy supplies .
Iranian-Controlled Transit Route
The Chinese vessels followed a specific route designated by Iranian authorities near Larak Island, located north of the internationally recognized traffic separation scheme . This suggests that Tehran is maintaining a controlled, toll-based corridor for ships willing to comply with Iranian navigation requirements—even as the broader strait remains effectively closed to normal commercial shipping.
The departure of the Chinese tankers follows Iran’s formal creation of the Persian Gulf Strait Authority (PGSA) on May 18, a new body designed to manage traffic and potentially charge fees for vessels using the waterway under Iranian supervision [citation:previous coverage]. The authority has indicated it will provide “real-time updates” on strait operations and impose costs for “specialized services.”
Diplomatic Context: Optimism from Washington
The successful transit of the Chinese vessels came amid a flurry of optimistic statements from the White House regarding the potential for a diplomatic resolution to the conflict.
“We’re in a pretty good spot here,” Vice President JD Vance told a White House press briefing on Tuesday .
President Trump, who announced on Monday that he had postponed a planned military strike against Iran at the request of Gulf leaders, told reporters: “I was an hour away from making the decision to go today. Iran’s leaders are begging for a deal” .
Trump added that a new US attack would happen in the coming days if no agreement was reached, but also predicted the war would end “very quickly” .
Market Reaction: Oil Prices Ease
The positive signals from Washington and the tangible movement of oil through the strait had an immediate impact on global energy markets.
| Commodity | Price Movement |
|---|---|
| Brent crude | Fell as low as $110.16 per barrel |
| Recovery | Regained much of its losses later in the session |
Source: Market data
“Investors are keen to gauge whether Washington and Tehran can actually find common ground and reach a peace agreement, with the US stance shifting daily,” said Toshitaka Tazawa, an analyst at Fujitomi Securities .
The US Blockade Challenge
The Chinese tankers now face another hurdle: the US naval blockade that has been in place on Iranian ports since April 13. According to shipping analysts, both vessels will have to cross the US blockade at the edge of the Gulf of Oman and the Arabian Sea . However, neither vessel appears to have called at Iranian ports—their cargoes were loaded in Iraq and Qatar—which may mean they are not subject to the strictest enforcement measures .
US Central Command has previously stated that its forces have “redirected” 72 commercial vessels attempting to breach the embargo and disabled four Iranian-flagged tankers [citation:previous coverage]. The US has also seized at least three Iran-linked tankers in the Indian Ocean during the conflict, including the Skywave earlier this week, which was carrying over 1 million barrels of crude [citation:previous coverage].
Political Pressure on Trump
The urgency to reach a deal is heightened by domestic political considerations. Trump is under intense political pressure at home to reach an accord that would reopen the Strait of Hormuz .
Gasoline prices remain high, and Trump’s approval rating has plummeted with congressional elections looming in November . The war has caused significant economic disruption, and the administration faces competing pressures from those urging a tougher military stance and those demanding a swift diplomatic resolution.
Iran’s Position: A Narrow Path
Iran has maintained that it will not allow normal maritime transit through the strait until the war permanently ends and the US naval blockade is lifted [citation:previous coverage]. Tehran has submitted a revised 14-point peace proposal demanding the lifting of all sanctions, release of frozen assets (estimated at over $100 billion), war reparations, and recognition of Iranian sovereignty over the strait [citation:previous coverage].
The US has reportedly refused to release “even 25 percent” of Iran’s frozen assets and rejected demands for war reparations [citation:previous coverage]. However, the positive signals from Washington suggest that backchannel negotiations—mediated by Pakistan—may be making progress, or at least creating enough momentum to allow limited oil movements like those of the Chinese tankers.
What Comes Next
The departure of the Chinese supertankers is a tangible indicator that the stranglehold on the Strait of Hormuz may be loosening—however slightly. Several factors will determine whether this represents a genuine turning point or merely a temporary window:
| Factor | Significance |
|---|---|
| Further tanker movements | If additional vessels exit in coming days, it would suggest sustained easing |
| US blockade enforcement | Whether the tankers pass through the blockade without interception will test US posture |
| Diplomatic timeline | Trump has indicated a decision on military action could come “Friday, the weekend or early next week” |
| Iran’s mine clearance | US intelligence has detected at least 10 mines in the strait; clearance remains a prerequisite for normal operations |
For now, the sight of two supertankers carrying four million barrels of oil finally escaping the Gulf after more than two months offers a rare glimmer of hope in a conflict that has caused unprecedented disruption to global energy supplies. Whether that hope translates into a lasting resolution—or proves to be a brief interlude before renewed escalation—remains to be seen.
Frequently Asked Questions (FAQs)
Q1: How much oil were the Chinese supertankers carrying?
A: The two vessels were carrying a combined total of approximately four million barrels of crude oil—two million barrels on the Yuan Gui Yang (Iraqi Basrah crude) and two million barrels on the Ocean Lily (one million barrels each of Qatari al-Shaheen and Iraqi Basrah crude) .
Q2: When did these vessels become trapped in the Gulf?
A: Both vessels entered the Gulf shortly before the conflict began. The Yuan Gui Yang loaded its cargo on February 27—just one day before the US and Israel launched coordinated strikes on Iran on February 28—meaning the vessels have been waiting to exit for more than two months .
Q3: What route did they use to exit?
A: The vessels followed a transit route near Larak Island prescribed by Iranian authorities, which runs north of the internationally designated traffic separation scheme (TSS) . Iran has ordered ships to use this specific route.
Q4: Are these the only tankers that have exited?
A: No. The Yuan Gui Yang and Ocean Lily join the Yuan Hua Hu, another Chinese VLCC that exited last week with two million barrels of Iraqi oil bound for Zhoushan Port . They are among a handful of supertankers carrying Iraqi crude to exit the Gulf this month .
Q5: How did oil markets react to the news?
A: Oil prices eased on the positive signals from the White House and the tangible movement of oil through the strait. Brent crude fell to as low as $110.16 per barrel before regaining much of its losses .
Q6: Will these tankers face the US blockade?
A: Yes. Both vessels will have to cross the US naval blockade at the edge of the Gulf of Oman and the Arabian Sea. However, neither vessel appears to have called at Iranian ports—their cargoes were loaded in Iraq and Qatar—which may affect how the US blockade is enforced against them .
Q7: What did Trump and Vance say about a potential deal with Iran?
A: Vance told reporters “We’re in a pretty good spot here,” while Trump stated the war would be over “very quickly.” Trump also revealed he had been “an hour away” from ordering a new military strike but paused at the request of Gulf leaders who believe a diplomatic deal may be within reach .
Q8: Is the Strait of Hormuz fully open for shipping?
A: No. While a limited number of tankers have exited, the strait remains largely closed to normal commercial shipping. The US has detected at least 10 naval mines in the waterway, and clearance operations are ongoing. Full reopening will likely require a broader diplomatic resolution to the conflict.
This is a developing story. Reflecto News will continue to provide updates on tanker movements through the Strait of Hormuz, the status of US-Iran negotiations, and global energy market reactions.