The global oil market faces a period of intense volatility as the reopening of the Strait of Hormuz unleashes a surge of Middle Eastern exports, according to industry analysis.
While crude prices have retreated to levels seen before the Iran war, the sudden influx of supply is creating a chaotic rebalancing act that traders are only beginning to navigate.
Analysts cited by Asharq Al-Awsat warn that the market structure remains fragile.
The rapid normalization of flows through the critical chokepoint is not translating into immediate price stability.
Instead, the sheer volume of barrels returning to global markets is overwhelming existing demand absorption mechanisms, leading to erratic pricing and logistical bottlenecks.
This development complicates the outlook for energy traders who had priced in a smoother transition.