Rabobank’s Global Daily highlights that the Strait of Hormuz remains functionally closed, with global crude and refined product stocks rapidly drawing down. The report stresses that markets are focused on whether US strikes on Iran resume, warning that renewed bombing could send physical Oil prices and prompt spreads sharply higher as Asian supply chains struggle to secure barrels.

Hormuz closure and escalation risks for Oil

"Hormuz diary, day 79. The strait remains functionally closed and global crude and refined product stocks are rapidly drawing down."

"While markets might be waiting for the restart of a bombing campaign in Iran to send physical crude prices and prompt spreads sharply higher (and stock prices sharply lower), for physical supply chains in Asia getting back to the (oil) well becomes more pressing by the day."

"Scott Bessent says that Iranian crude is going to have to go back to the well as the US blockade brings shut-ins ever closer."

"Central banks and many governments continue to base forecasts on a near-term resolution in Iran that sees the Strait of Hormuz fully re-open to shipping."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)