Oil Flows From Middle East Rebound Amid Ongoing Regional Tensions

Oil flows from the Middle East have nearly recovered to pre-war levels according to a recent report. As of September 29, JPMorgan notes that oil flows have rebounded to 98% of their pre-war levels.

However, not all of this oil is passing through its usual route. Only about 80% of it is being transported through the Strait of Hormuz, while the remainder - primarily Saudi crude - is being redirected via pipelines to the Red Sea.

According to Steve Grasso, director of institutional sales at Grasso Global, a 'war premium' remains despite this rebound in oil flows. This means that even though the numbers are looking good, the conflict in the region has not yet fully ended.