Oil Market Recovery Hinges on Hormuz Stability as IEA Warns Renewed Fighting Clouds Outlook

Global oil markets are beginning to recover from months of disruption, but the International Energy Agency says the outlook remains heavily dependent on whether shipping through the Strait of Hormuz continues to normalize after renewed fighting between the United States and Iran.

In its July Oil Market Report, the IEA said world oil demand is rebounding from a May low as seasonal consumption increases and fuel supplies recover, while crude production and exports from the Persian Gulf have partially resumed following the reopening of the Strait of Hormuz.

However, the agency warned that the latest escalation in