Overview
- More than three months after U.S. and Israeli strikes effectively closed the Strait of Hormuz, roughly one‑fifth of global oil flows remain disrupted and shipping is far below pre‑conflict levels.
- Governments and companies have responded by tapping strategic reserves, rerouting shipments through pipelines and alternative routes, and boosting output from producers that do not rely on Hormuz.
- China’s crude imports have fallen sharply and Beijing appears to be drawing on state and commercial stocks, a move that has removed millions of barrels a day from global demand and helped blunt price spikes.
- Those buffers have kept benchmark oil around or under $90 a barrel instead of the much higher levels once feared, but the U.S. Strategic Petroleum Reserve and regional hubs such as Cushing are nearing multi‑decade lows.
- Industry leaders warn June and July are pivotal for replenishing supplies, and even a diplomatic deal to reopen Hormuz would likely take weeks to months to restore normal flows, raising risks of higher pump prices and political pressure.