U.S. Memo to End Hormuz Conflict Sparks Reopening Hopes Amid Inventory Draw

Global energy markets are facing intensifying pressure as fuel inventories deplete at a record speed that exceeds market absorption capacity, despite diplomatic efforts to resolve the Strait of Hormuz conflict. Physical supply disruptions have now completely erased the oversupply cushion present at the start of the war, leaving the market vulnerable. These developments coincide with EIA data showing a 2.313 million barrel drop in U.S. crude inventories, leading analyst Jeff Currie to warn of total depletion by July. While investors await Iran's response to a U.S. memo regarding a phased reopening of the waterway, focus has shifted toward the critical disappearance of global supply buffers. Market experts also noted $1.7 billion in suspicious trading activity prior to major reports, adding to price volatility. Consequently, the market's ability to meet peak summer demand now hinges on the Strategic Petroleum Reserve (SPR) amid a total erasure of the global supply surplus.