How global oil supplies have readjusted to help fill the huge gap left by the Strait of Hormuz shock in Oil & Companies News 29/06/2026 Global energy markets have been contending with their largest supply disruption in history resulting from the near closure of the Strait of Hormuz, a vital artery for oil and gas shipments to reach global markets. The cumulative oil supply losses from producers in the Middle East now exceed 1.3 billion barrels, with flows through the Strait of Hormuz falling from around 20 million barrels per day prior to the conflict to an average of 2.7 million barrels per day in March, April and May. Since the start of the war in the Middle East on 28 February, the huge drop in the number of tankers shipping oil and gas from Gulf producers through the Strait of Hormuz has severely dislocated oil market flows, not only for crude oil, but also for petrochemical feedstocks, liquefied petroleum gas (LPG) for cooking, and middle distillates such as diesel and jet fuel. As the crisis intensified in early April, the North Sea Dated international crude oil benchmark reached an all-time high of $144 per barrel – more than double its pre-war levels, with even steeper gains recorded for jet fuel and diesel. Prices have since eased significantly as demand has fallen sharply, and on increased optimism that a deal would be reached to enable more regular shipping flows through the Strait. The new agreement last week between the United States and Iran, which aims to reopen the Strait and provide the foundation for a lasting peace, is a crucial breakthrough on this front, with signs of exports already increasing since the deal was agreed. The supply disruptions and price spikes to date have prompted a wide range of responses by oil producers, refiners and consumers to adapt to the radically changed market conditions. Many consumers have scaled back their energy use and governments have taken steps to shelter households and businesses from the impacts, especia