Deflating the War Premium

The sudden prospect of a reopened Strait of Hormuz caused speculators to aggressively unwind long positions. President Trump suggested the strait could be 'open to all' if Iran accepted proposed terms, fueling the selloff.

Cautious Optimism

While prices have dropped, physical traders remain cautious. The phased measures required to restore maritime security will take time, and current global inventories remain uncomfortably low.