Nearly four-month Hormuz disruption leaves 1.15 billion barrels of oil supply missing

The Strait of Hormuz was closed for nearly four months amid a U.S.-Iran conflict, leaving a permanent loss of 1.15 billion barrels of global oil supply. Strategic reserves tracked by the International Energy Administration and the U.S. emergency reserve have fallen to their lowest levels since 1990 and a 43-year low, respectively. Commercial inventories are under operational strain, with the Cushing, Oklahoma hub reaching a critical pressure threshold. Although the strait has reopened, rebuilding stocks could take about a year, raising near-term risks of physical inventory exhaustion that could hit spot and futures markets.