Hormuz reopens as oil markets tip toward glut

The week’s decisive shift was from fear of a prolonged Hormuz disruption to a supply-heavy oil market as traffic recovered and OPEC+ added barrels. That reversal pushed prices lower while Iranian and Russian barrels added pressure to buyers and producers.

The reopening did not restore full energy security, as constrained LNG flows drove Asian buyers toward emergency purchases, larger reserves, and supplier diversification. At the same time, heat and AI loads exposed a separate infrastructure squeeze in US power systems.