The last shipment of Middle Eastern crude oil to California has been unloaded: the next shipment will take several months.

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The supertanker New Corolla completed unloading at California’s Port of Long Beach this week, delivering the last shipment of Middle Eastern crude oil California will receive. According to market intelligence firms Vortexa and Kpler, in the months following the reopening of the Strait of Hormuz, no more tankers carrying Middle Eastern crude will arrive in California—deepening the energy crisis in the state with the highest gas prices in the U.S., with no sign of relief.

Currently, the average gasoline price in California has risen to $6.16 per gallon, the highest in the nation, about $1.61 more than the national average; average diesel prices at $7.48 per gallon are about $1.82 higher than the national average. GasBuddy analyst Patrick De Haan warns that even with the Strait reopening, “it will take a month or two for flows to resume, and then more time to fill the gap.”

California’s vulnerability in this crisis is especially pronounced. The state currently imports about 75% of the crude oil it consumes, with nearly a third coming from the Middle East—giving it the highest dependence on Middle Eastern crude of any U.S. state. At the same time, key Asian fuel suppliers like South Korea are cutting exports to California, and two local refineries have shut down in the past six months, adding pressure on multiple fronts.

The Trump administration has implemented emergency measures like Jones Act waivers and offshore pipeline restarts, but analysts and industry insiders point out that the supply gap is too large to be bridged in the short term. Vortexa analyst Rohit Rathod puts it simply: “There are no more scheduled vessels from the Middle East.”

The Last Tanker: A Six-Week Journey Across Two Oceans

New Corolla left Iraq’s Basra port days before the U.S. and Israel launched their initial attacks on Iran, passing through the Strait of Hormuz on February 28. It carried about 2 million barrels of crude across the Indian and Pacific Oceans, taking six weeks to reach the U.S. West Coast. The tanker already unloaded part of its cargo last month and continued unloading at Long Beach this Friday. Once unloading is complete, Middle Eastern crude supply will be entirely cut off, and it may be several months after the Strait reopens before another ship arrives.

California’s energy crisis is now compounded by a refined fuel shortage. Vortexa data shows South Korea’s supply of refined products to California in May is expected to be only about 35,000 barrels per day, sharply down from April’s 100,000 barrels per day—as major Asian fuel exporters slow outbound shipments to safeguard their own energy security.

Local refinery capacity cuts have exacerbated the crisis. In the past six months, two major California refineries have shut down, taking about a fifth of local refining capacity offline. Analysts point out that closure of the Strait of Hormuz has disrupted at least 1 billion barrels of crude supply globally, with knock-on effects expected to last well beyond the reopening of the strait.

Emergency Lifelines, But Limited Effectiveness

The Trump administration introduced several emergency measures. In mid-March, the government issued a 60-day waiver of the Jones Act. The Jones Act, signed by President Woodrow Wilson in 1920, bans foreign ships from transporting goods between U.S. ports; the waiver allows companies to use larger foreign tankers to bring energy to California, improving the unprofitable supply routes.

According to Vortexa data, U.S. oil companies including refiner Marathon Petroleum have, since mid-March, shipped about 2 million barrels of gasoline, gasoline blendstocks, jet fuel, and biodiesel to California via about 12 foreign tankers transiting the Panama Canal, with a small portion going to Alaska and other states. California typically consumes over 1 million barrels of refined products per day, creating a significant gap between supply and demand. Chevron spokesperson Ross Allen acknowledged:

"So far, vessel availability and positioning issues have limited the scale of relief provided by the Jones Act waiver."

The government has also invoked the Defense Production Act—a Cold War-era law allowing the president to expedite materials flow in emergencies—to approve oil producer Sable Offshore to restart an offshore pipeline. The pipeline, previously shut by California regulators in 2015 after a leak polluted the coastline, has now resumed operations, supplying about 50,000 barrels of crude per day to California. Chevron CEO Mike Wirth said on his earnings call this month that the company had routed some Sable crude to its El Segundo refinery:

"We're doing our utmost to fulfill our supply obligations, but this also highlights the structural vulnerability California has accumulated over decades of poor energy policy."

Structural Dilemma: Policy Legacy Sparks Political Dispute

California’s passive position in this crisis is rooted in its long-standing energy structure. Since the mid-1980s, U.S. drillers have gradually withdrawn from California, shuttering dozens of refineries; the state also lacks major pipeline networks connecting it to oil-rich states like Texas and New Mexico, making it unable to benefit from America’s oil boom and deeply reliant on overseas imports.

This predicament has become a political flashpoint. Chevron relocated its headquarters to Houston two years ago, with Mike Wirth blaming California’s chronic high oil prices on structural vulnerability caused by energy policy, citing heavy taxes and strict environmental regulations as key reasons companies are leaving the state. California Governor Gavin Newsom, meanwhile, has pointed the finger at the federal government, posting on X in March: “Trump’s disastrous war with Iran cost Americans an extra $1.5 billion at the pump last week, and no amount of spin from Trump or his cronies can cover that up.”

Analysts note that as long as the Strait of Hormuz remains blocked, California will continue to face rapidly shrinking supplies, and emergency measures can only make up a small part of the gap.

Risk Warning and DisclaimerMarkets are risky and investments should be made with caution. This article does not constitute personal investment advice and does not consider individual users’ specific investment objectives, financial situation, or needs. Users should consider whether any opinions, views, or conclusions in this article suit their circumstances. Invest at your own risk. ```