Oil Workarounds Losing Time As Diplomacy Drags

Oil markets are increasingly pricing in a long-term structural disruption in the Strait of Hormuz as inventory drawdowns reach record levels. Despite diplomatic efforts, Iran's push for maritime control suggests a 'higher-for-longer' price regime is emerging.

Key Takeaways

• 1.The impairment of the Strait of Hormuz is shifting from a temporary market shock to a structural change in maritime control.
• 2.Global crude inventories are being depleted at a record pace of 8.7 million barrels per day in May.
• 3.US crude exports have surged to record highs of 5.6 million barrels a day to compensate for Middle Eastern disruptions.

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