The 17 June signing of the memorandum of understanding (MoU) to end the US-Iran conflict has fired the starting gun in the race to restart oil production in the Gulf and increase exports through the Strait of Hormuz. The task ahead is unprecedented in scale, and normalization of production and flows through the strait will take months, but the process is at least now underway.
Time is of the essence and a race is now underway for oil to exit the strait and reach consumer markets before global inventories fall to dangerously low levels. “We run out of reserves at about four weeks [from now],” President Donald Trump said during the G7 summit in France this week, pointing to the economic need to reopen the strait as otherwise “there would be a time when you wouldn’t be able to get it [oil], and you want there to be bedlam?” (CONTINUED - 1166 WORDS)
