Hormuz Reopens as Traders Price Out the War Premium Tom Kool June 16, 2026 7 min read CL=F The U.S.-Iran agreement to reopen Hormuz and lift the maritime blockade has pushed oil below $80, though risks remain if tensions in Lebanon escalate. China Slams the Brakes on Crude Refining - China's crude throughput has plunged by a hefty 9.1% year-over-year to 12.7 million b/d, according to the country's National Bureau of Statistics, marking one of the most substantial instances of demand destruction on the heels of the US-Iran conflict. - Refinery runs in China plunged to their lowest since April 2022, depressed by negative refining margins and the still ongoing product export ban, despite Beijing enticing its downstream sector with a new product export quota last week. More from Yahoo Scout Why has China's crude refining declined so dramatically?
What caused oil prices to drop below $80? What impact will the Hormuz reopening have on markets? How are major oil companies responding to market changes? - China's seaborne crude imports in June to date suggests that May's multi-year lows might not be the end of the tunnel, as inflows to Chinese ports dropped by another 600,000 b/d month-over-month to 6 million b/d.- Even if at a relatively slow pace, China has finally started to draw down its giant 1.3-billion-barrel crude inventory, with Kpler data showing current stocks almost 20 million barrels lower than two months ago. - Meanwhile, China's retail sales contracted for the first time since the COVID-19 pandemic, down 0.6% from a year ago, indicating that Chinese consumer spending is reactive to energy-driven spikes.
Market Movers - US LNG developer Venture Global (NYSE:VG) has filed its application with the US Federal Energy Regulatory Commission to build an 11.7 mtpa expansion at its 28 mtpa Calcasieu Pass 2 terminal in Louisiana. - Libya's National Oil Corporation has finalized three upstream deal with Spain's Repsol (BME:REP) and Italy's ENI (BIT:ENI), pushing ahead for exploration in the offshore block 07 as well as onshore blocks 01 and 07. - Norway's state oil company Equinor (NYSE:EQNR) has pledged to double its share buybacks thanks to windfall profits from the US-Iran conflict, hiking them up from $1.5 billion projected in February to a 2026 target of $3 billion. - US oil major Chevron (NYSE:CVX) has reached an agreement with Helleniq Energy to acquire a 70% stake in Greece's Block 10 offshore hydrocarbon block, to the west of the Peloponnese peninsula. - Hungary's national oil firm MOL (BPSE:MOL) said it had agreed with Serbia to buy its national oil company NIS, receiving a 15-day approval extension from OFAC to conclude the deal with Russia's Gazprom Neft. Tuesday, June 16, 2026 The US-Iran deal providing for the immediate re-opening of the Strait of Hormuz and the lifting of the US maritime blockade on Iran has been signed by US President Trump, Vice President Vance and Iran's parliamentary speaker Qalibaf, sending Brent futures below $80 per barrel for the first time in more than 4 months. Unless derailed by another Israeli attack on Lebanon, oil markets could finally leave the conflict behind and 'let the oil flow'.
Story Continues Trump Rejects US Investments to Iran. Talking on the sidelines of the G7 summit in France, US President Trump claimed that the US would not be investing in Iran as part of the temporary peace agreement, however said there could be 'huge opportunities' in Iran once the peace deal is done. UAE Oil Tenders Flood Asian Markets.
The UAE's national oil company ADNOC has sold at least 30 million barrels of spot crude to Asian refiners and traders so far in June, boosting Middle Eastern supply at a time when the return of stranded Gulf barrels is leading to a regional overflow of oil. Woodside Refuses to Become a Target. Australia's upstream major Woodside (ASX:WDS) announced that it was not aware of any proposal involving US oil giant ExxonMobil (NYSE:XOM) after rumours started circulating about it becoming a potential takeover target for the Texas-based major.
US Strategic Stocks Drop to 43-Year Low. Crude volumes held in the US Strategic Petroleum Reserve dropped to its lowest level since 1983, coming in at 340.2 million barrels as of June 12, creating a headache for the White House as it needs to sell further 88 MMbbls in fiscal years 2028-2031. Turkey Pushes Back on Iraqi Pipeline Deal.
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