US Energy Secretary: Oil flows through Strait of Hormuz near normal levels

Key Facts

In a move to reassure global oil markets, the US Energy Secretary said oil flows through the Strait of Hormuz are now close to normal levels, according to Reuters. The statement comes after weeks of concern over potential supply disruptions due to Middle East tensions, prompting traders to reduce the geopolitical risk premium priced into crude futures.

The Strait of Hormuz is a vital chokepoint through which roughly 20% of global oil supplies transit, and any threat to freedom of navigation directly impacts crude prices. In recent weeks, oil prices experienced sharp volatility amid fears of regional escalation, but today's remarks by the US Energy Secretary may help stabilize prices near current levels (per market data, Brent crude around $87 per barrel as of June 25, 2026).

Investors can watch the upcoming weekly US inventory data from the Energy Information Administration (EIA) due tomorrow, which could provide further signals on supply-demand balance. Despite the improvement in flows, geopolitical risks remain if regional unrest reignites, warranting continued monitoring of political developments in Iran and Gulf navigation.