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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a development reflecting easing geopolitical tensions in the Middle East, Morgan Stanley stated that the Strait of Hormuz has reopened quicker than initially expected. The investment bank noted in a research memo that the strategic oil chokepoint, through which about 20% of global oil supplies pass, resumed operations faster than anticipated after a period of closure. The assessment comes as markets closely monitor any signs of supply disruption.
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Sign InThe improved situation follows weeks of concerns about a closure of the strait, which had driven crude oil prices higher. According to market data, West Texas Intermediate (WTI) crude fell about 9.2% over the past week to $68.45 a barrel (close on June 29, 2026), hitting a multi-week low. Brent crude contracts also declined to $72.10 a barrel on the same day, as the geopolitical risk premium faded.
Looking ahead, traders are eyeing the weekly inventory data from the American Petroleum Institute (API) and the Energy Information Administration (EIA) released on June 24, which showed a larger-than-expected drawdown in stockpiles. However, prices may remain under pressure if global demand falters or tensions re-emerge in the region. Investors are advised to monitor developments in the Arabian Gulf and OPEC+ moves amid an uncertain economic environment.