Hormuz Reopening Talks Stall, Oil Prices Remain Steady Amid Global Supply Concerns
Oil prices remained steady as negotiations to reopen the Strait of Hormuz stalled. The International Energy Agency (IEA) warned that a prolonged US-Iran conflict would leave the global oil market facing a supply shortfall of 1.8 million barrels per day in the third quarter, more than double its previous forecast.
The IEA also projected that the annual supply deficit in 2026 would be the largest in the past five years. The ongoing Russia-Ukraine war is also constraining supplies of crude oil and petroleum products, adding to inflation pressure.
As a result, US gasoline and diesel prices have reached record highs for this time of year, according to AAA. Strong summer travel demand and elevated crude prices are increasing the burden on consumers.