As we wind down the third week of this armed conflict with Iran, fuel markets continue to soar higher, now roughly $2.00 per gallon higher on distillates. Recent increases come on the fear of the conflict spreading to other nations, and the stalled reopening of the Strait of Hormuz.
Most NATO countries failed to RSVP for the reopening effort, leaving it solely on US shoulders to figure out. While Iranian drones and missile launches have been drastically reduced, someone is still there pressing the buttons, as roughly 100 drones a day are launched, with about a 20% hit rate. Those hits are getting to both tankers and neighboring energy complexes. The longer this drags on, the less likely we will see any rate cuts as Inflation risk makes its way back. Prior to this, we were just about at the turning point.
We still are not seeing any domestic supply disruptions. Having a supplier with owned barrels will insulate you from outages. Terminal delays are present, having a supplier with multiple options and an entire fleet to utilize is an added bonus.
