Iran Declares Strait of Hormuz Open as California Stocks Remain at Record Lows

Iran has officially declared the Strait of Hormuz 'completely open' for commercial vessels, easing global supply chain concerns. Despite this, a massive fleet of empty Very Large Crude Carriers (VLCCs) is currently sailing from Asia to the U.S. via the Cape of Good Hope to load American crude, marking the largest queue ever recorded. In a significant policy shift, the European Union has expressed readiness to coordinate a release of strategic jet fuel stocks should disruptions in the Strait persist. Asian buyers are rushing to secure U.S. crude to replace lost volumes, even as California's gasoline inventories remain at historic lows. Market participants are closely monitoring how these logistical shifts and potential EU interventions will impact WTI benchmarks and energy giants like Chevron and Phillips 66.