Commercial inventories have shed nearly 60 million barrels over the last twelve weeks, though total year-to-date declines remain tempered by ongoing SPR releases. The reserve now sits 405 million barrels below its maximum capacity. Domestic production also saw a marginal contraction, slipping to 13.810 million barrels per day for the week ending June 26.

Energy markets responded sharply to renewed instability in the Strait of Hormuz. Brent crude climbed 5.67% to $76.07, while WTI rose 5.37% to $72.23. The supply crunch extends to refined products as well; gasoline inventories dropped by 2.929 million barrels, deepening a deficit that already had stocks sitting 7% below the five-year seasonal average. Distillate stockpiles followed suit with a 1.801 million-barrel decline, further tightening the market as Cushing hub inventories also contracted by 69,000 barrels.