Overview
- Tanker traffic through the Strait of Hormuz effectively halted on Monday, sharply cutting flows from the Persian Gulf and reviving chokepoint risk.
- The U.S. Strategic Petroleum Reserve held about 316.5 million barrels on July 10, its lowest weekly level since 1983 after large releases earlier this year.
- Planned releases from strategic reserves that helped steady prices are scheduled to end around the end of July, removing a key policy buffer.
- Oil rose to roughly $90 per barrel on Monday and analysts warn that continued fighting and constrained shipping could push prices above $100.
- China appears unlikely to burn through its stockpiles to stabilize markets and a Houthi-announced maritime blockade on Saudi routes adds fresh supply risk that would raise fuel costs for households and businesses.