Strait of Hormuz Disruptions Propel U.S. Oil Refinery Boom in 2026

In the second quarter of 2026, disruptions in the Strait of Hormuz significantly impacted international oil flows, resulting in increased U.S. refinery margins and exports. The U.S. Energy Information Administration reported a surge in production, as U.S. refineries capitalized on strong market demand for transportation fuels amid global supply challenges.

Disruptions in the Strait of Hormuz have led to significant shifts in the oil market during the second quarter of 2026, according to the U.S. Energy Information Administration (EIA). This significant chokepoint for international crude oil and petroleum flow saw a slowdown, driving up U.S. refinery margins, production, and exports.

Rising international demand forced buyers to look for alternate sources, propelling U.S. refineries to operating levels unseen since 2019, despite a refining capacity only 4% higher than that year. The average gasoline crack spread surged 60% compared to the previous year, highlighting intensified market dynamics.

Consequently, there was a record rise in U.S. distillate and jet fuel exports. Distillate exports reached 1.56 million barrels per day, a 30% hike from the five-year average, while jet fuel exports more than doubled, largely driven by Europe's increased demand amidst the global crunch, the EIA noted.