Oil, Gas Supplies Need Months to Recover as 20% Hormuz Flow Restarts Slowly
Updated
Updated · The Associated Press · Jun 15
Oil, Gas Supplies Need Months to Recover as 20% Hormuz Flow Restarts Slowly
3 articles · Updated · The Associated Press · Jun 15
Summary
Energy experts said Sunday’s Iran war deal will not quickly ease high oil and gasoline prices, with global oil and gas supplies likely taking months to normalize.
About 20% of the world’s oil and gasoline normally moved through the Strait of Hormuz, but crude tankers have been stranded in the Persian Gulf for more than three months and insurers and shippers still need confidence in security.
Restarting supply will also be slowed by the industry’s logistics: trapped ships must leave first, new tankers must enter and load, and crude still takes months to reach refineries and final markets.
Middle East producers that shut in output after storage filled face uneven recoveries, with Saudi Arabia and the UAE likely to resume faster via alternate routes while Iraq could take about a year.
Analysts said investment across the energy system also stalled during the closure, and producers may wait for a ceasefire lasting beyond 30 to 60 days before fully restarting.
How will $58 billion in war damages reshape Gulf energy production for the next decade?
With Iran now charging tolls, is the Strait of Hormuz truly open or the world's most expensive toll road?
Strait of Hormuz Crisis 2026: Global Oil Flows Halved, Energy Markets Face Prolonged Disruption and Price Surge
Overview
In June 2026, the US and Iran agreed to end their conflict and reopen the Strait of Hormuz, raising hopes for easing pressure on global oil and LNG markets and restoring a vital trade route. However, the recovery remains fragile and incomplete, with only about half of the disrupted oil supply moving through the Strait and the rest rerouted via pipelines. Ongoing regional instability, logistical bottlenecks, and uncertainty about the true extent of recovery make planning difficult for businesses. Despite diplomatic progress, the global energy market faces significant hurdles, with consumers and companies adapting to a new, more cautious reality.