U.S. Crude Oil Imports from Saudi Arabia Drop to Zero in July, First Time in Over 40 Years
Miles Bennett
U.S. crude imports from Saudi Arabia dropped to zero in July 2026, the first full-month shutout since 1985; a near-total closure of the Strait of Hormuz forced refiners to find alternatives, with Venezuela emerging as the biggest beneficiary.
Zero for the first time in four decades — what happened?
U.S. Energy Department data show July Saudi crude imports fell to zero — the first full-month blank since 1985.
Earlier this year, U.S. refiners were still buying over 800,000 barrels per day from Saudi Arabia.
This means → the drop was not a gradual demand decline but a sudden supply cutoff.
Why did supply stop so abruptly?
The direct cause: the U.S.–Iran conflict left the Strait of Hormuz nearly fully closed, blocking Persian Gulf export routes.
Middle Eastern crude prices, benchmarked to global markers, surged, making Gulf oil both unaffordable and unshippable for U.S. refiners.
In plain terms = the Strait is the only chokepoint for Persian Gulf oil — block it, and Saudi crude simply cannot reach U.S. ports.
How are refiners coping?
Phillips 66 CEO Mark Lashier said the company's Middle Eastern crude intake has fallen to less than 1% of refinery input.
The company has rerouted domestic U.S. light crude to its New Jersey refinery to replace lost imports.
Chevron, PBF Energy, and Motiva — the Saudi-owned Texas refinery that is the largest in the U.S. — have historically been major Saudi crude buyers and are now similarly forced to pivot.
Who is the biggest winner?
Venezuela has emerged as the top beneficiary of this supply shift.
Bloomberg reports U.S. imports of Venezuelan crude hit roughly 600,000 barrels per day in July, up from about 100,000 bpd at the start of the year — a six-fold increase.
This means → U.S. refiners moved fast to replace blocked Saudi barrels, and Venezuela captured the bulk of the vacated share.
Will this last?
Kpler data forecast that August U.S. imports from Saudi Arabia could recover to roughly 300,000 bpd, closer to recent historical norms.
Whether that rebound materializes hinges on Strait of Hormuz negotiations.
In plain terms = July's zero reading looks more like a short-term shock than a permanent break — but as long as the Strait remains contested, the outlook stays uncertain.
Content is for reference only, not financial advice.