The war stopped producing headlines that move the market. The market is moving anyway. Five straight sessions of gains, Brent up more than 4% on the week, WTI up more than 5%, and the rally did not need a new missile strike or a fresh threat from Washington. The Strait of Hormuz is barely functioning. Iranian crude is getting scarcer in Asia. Floating storage is draining. Chinese refiners are scrambling for replacement barrels. Monday brings what Treasury Secretary Bessent called the toughest sanctions in history against Tehran. The oil market is not pricing a disruption that might get worse. It is pricing one that already has.
Oil News: Can Iran’s Shrinking Floating Storage Keep Crude Prices Supported?
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Key Points:
- Only seven commodity ships passed through Hormuz Thursday, half the prior day's total as the route keeps deteriorating.
- Iranian floating storage fell to 80 million barrels from 105 million as the blockade drains barrels off the water.
- Some Iranian Light cargoes flipped from discounts to premiums against Brent as supply dries up ahead of sanctions.
