Middle Eastern fuel oil exports are set to rebound to a four-month high in June as Iraq and Saudi Arabia diverted supply to other ports while shipments through the Strait of Hormuz are set to pick up, according to trade sources and shipping data, according to Reuters.

Supply from the region could rise further as more cargoes gradually exit the strait after the US and Iran reached an interim deal to end their conflict, sending high-sulphur fuel oil prices tumbling at key trading hubs like Singapore.

Middle East exports are set to hit about 2.4 million metric tons (508,000 barrels per day) this month, up over 20 per cent from May, data from Kpler and LSEG showed. However, this remains well below a monthly average of 5.5 million to 6.0 million tons before the war.

“Fuel oil flows through the Strait of Hormuz are expected to increase over the next 60 days, but the recovery is unlikely to be substantial,” said Palash Jain, Middle East oil consultant at FGE NexantECA.