US-Iran Conflict Drives Oil Inventory Drain to Near-40-Year Low

The US Central Command launched a two-hour operation targeting dozens of Islamic Revolutionary Guard Corps targets inside Iran on Thursday morning.

This move marked the end of any hope for a diplomatic resolution, as the Oman proposal for Hormuz had already been deemed dead following the missile attack on US forces.

The oil market is now witnessing direct military action between the two countries, with the Strait of Hormuz barely functioning and crude inventories draining at an unprecedented pace.

US domestic crude inventories have been depleting at a rate that nobody expected, with emergency reserves reaching levels not seen since the early 1980s.