Oil News: Crude Outlook Turns Bullish as U.S.-Iran War Drains Oil Inventory
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Key Points:
- U.S. strikes inside Iran ended the diplomacy trade, leaving Hormuz traffic and the war in control of oil futures.
- Hormuz tanker traffic averages just 11 vessels over seven days, far below normal levels despite a single LNG transit.
- EIA crude stocks fell 7.2 million barrels versus a 1.3 million-barrel forecast, tightening an already thin supply picture.
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The United States stopped talking and started striking Thursday morning. U.S. Central Command hit dozens of Islamic Revolutionary Guard Corps targets inside Iran in a two-hour operation that ended any pretense that the diplomatic pause was leading somewhere. The Oman proposal for Hormuz was already dead. The missile attack on U.S. forces was the trigger. The strikes were the answer. The oil market now has direct military action between the two countries, a strait that is barely functioning, domestic crude inventories draining at a pace nobody expected and emergency reserves that have not been this low since the early 1980s.