Brent Erases Iran War Premium as Hormuz Flows Show Signs of Recovery
AI Summary
Oil prices fell sharply as market participants anticipate recovery of crude flows through the Strait of Hormuz. Brent crude dropped 10% this week, with Middle Eastern benchmarks moving into contango signaling temporary oversupply and easing of regional tensions.
Oil prices tumbled as markets bet Strait of Hormuz disruptions will ease, with Brent down 10% on the week and Middle East crude benchmarks slipping into contango. Friday, June 26, 2026 Whilst ship transits through the Strait of Hormuz remain a fraction of their previous norm (130-140 transits per day), plunging crude oil prices suggest the commodity markets anticipate that flows would start to recover sooner than later. The two Middle Eastern crude benchmarks, Dubai and Murban, have flipped into contango, as a temporary period of oversupply is…