Iran's oil storage is nearly full, a direct result of the US naval blockade that slashed exports from 2.1 million barrels per day to under 600,000 since mid-April. The blockade, part of escalating US-Iran hostilities, now forces Iran to the brink of production cuts.
Analysts say this is a moderate but significant factor supporting a scenario where WTI prices could hit $160. Markets are already pricing in a potential 15% increase. Key variables ahead: OPEC+ response and any change in the blockade's status.
The market now watches for geopolitical moves that could affect the Strait of Hormuz and global shipping lanes.