Hormuz Tensions Ebb as OPEC+ Policy Remains Unchanged

Recent incidents in the Strait of Hormuz have raised concerns about maritime risks, but diplomatic efforts continue to resolve tensions. The White House has responded to Iran's proposed confidence-building measures through Qatar, with points of contention shifting to the specifics of phased measures to reopen shipping.

The unexpected build-up in U.S. crude stocks adds bearish momentum from a prices and fundamentals perspective. However, OPEC+ is expected to leave its policy unchanged, maintaining production levels. The market remains balanced for crude oil and oil products, with the UK and natural gas markets expected to be range-bound.

Liquefied Natural Gas (LNG) market vessels are passing through Hormuz again, but supply disruptions from Qatar continue to affect the overall market. The U.S. is building record natural gas inventory, with the EIA projecting 2026 production figures.