WASHINGTON: Global oil inventories are falling rapidly as shipping through the Strait of Hormuz remains severely disrupted amid the continuing US-Iran conflict, increasing pressure on energy markets and raising fresh concerns over global supply.
The International Energy Agency has warned that global oil stockpiles are being depleted quickly as flows from the Gulf remain constrained. Crude inventories have fallen below 7.9 billion barrels for the first time since April 2025, while the agency expects global oil supply to decline sharply this year.
The Strait of Hormuz, one of the world’s most important energy shipping routes, has seen traffic fall to a fraction of normal levels. Reuters reported that only eight vessels were tracked through the strait on Tuesday, compared with pre-war traffic of roughly 130 to 140 ships a day.
Shipping Companies Avoid Strait of Hormuz
Shipping firms are increasingly reluctant to send vessels through the waterway because of continuing missile and drone threats, attacks on commercial ships and sharply higher war-risk insurance costs.
Recent shipping data show that traffic through Hormuz remains near multi-month lows, despite claims by US President Donald Trump that Washington has “total control” of the strategically critical passage.
Maritime analysts say the reality remains far more complicated, with shipowners and crews continuing to assess whether the risks of crossing the strait outweigh the commercial benefits.
Iran Says Strait Will Stay Closed
Iran has rejected Trump’s claim that the United States controls the Strait of Hormuz and says the waterway will remain blocked until Washington accepts Tehran’s conditions.
The deadlock has reduced expectations of an early return to normal shipping and increased uncertainty over crude exports from Gulf producers.
Oil prices have remained elevated as traders weigh the risk that the disruption could persist. Brent crude was trading around the high-$80-a-barrel range this week, while analysts continue to monitor negotiations over reopening the strait.
Fresh US-Iran Fighting Remains a Risk
Analysts have also warned that renewed attacks between the United States and Iran could further disrupt shipping and deepen the impact on global energy markets.
Any escalation around Hormuz could tighten oil supplies further, push up freight and insurance costs and add fresh inflationary pressure in energy-importing economies.
For now, the biggest uncertainty is how quickly regular commercial traffic can resume through the Strait of Hormuz. Until then, shrinking inventories and restricted Gulf exports are likely to keep global oil markets under pressure.
Also Read: Brent Oil Tops $90 as US-Iran Conflict Fuels Hormuz Supply Fears
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