U.S. and Global Oil Markets Face Potential Crisis Amid Strait of Hormuz Closure
The ongoing closure of the Strait of Hormuz, following a conflict involving the U.S. and Israel against Iran, has led to a significant depletion of oil inventories among major consuming countries. Analysts, including Frederic Lasserre from Gunvor Group and experts from JPMorgan, warn that if the closure persists, oil markets could face severe shortages, hitting 'tank bottoms' where stockpiles are exhausted. This situation is exacerbated by Iran's inability to export oil due to a U.S. naval blockade, leading to increased domestic storage levels. Iran is attempting to manage this by reducing crude output and utilizing old tankers for storage. Meanwhile, oil futures have not yet reached extreme price levels, but the potential for drastic price increases looms if the situation continues. 
