Brent Surges Past $114 as US-Iran Talks Stall Amid Potential Naval Blockade

Key Facts

Oil prices maintained their rally above $114.50 per barrel as stalling U.S.-Iran negotiations and escalating military threats tighten the market. The blockade of the Strait of Hormuz has resulted in a net global crude supply loss of 9 million barrels per day according to Vortexa data. Alternative pipeline routes via Yanbu, Fujairah, and Ceyhan are only restoring approximately 3.6 million bpd to the global system, failing to offset the massive deficit. Meanwhile, U.S. Gulf Coast crude oil exports have reached record highs, significantly supported by Strategic Petroleum Reserve (SPR) releases to mitigate supply shocks. With U.S. gasoline inventories at their lowest levels since 2014 and Iran nearing maximum storage capacity, the bullish case for energy majors like Chevron remains strong.

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