US Awaits Iran Reply as Aramco Warns Hormuz Reopening No Quick Fix

The US is waiting for Iran's response to a proposal to end 10 weeks of conflict, while Saudi Aramco warns that reopening the Strait of Hormuz would take months to normalize oil markets.

The market remains on edge as diplomatic efforts continue. Saudi Aramco's warning that even an immediate reopening of the Strait of Hormuz would not quickly restore normalcy underscores the deep disruptions caused by the conflict. The strait handles about 20% of global oil transit, and any prolonged closure tightens supply significantly. Live fuel prices on NowPrice show how the market is reacting in real time, with crude benchmarks fluctuating on every headline.

For oil and gas traders, the key takeaway is that supply risks are not binary. Even if a deal is reached, the return of Iranian barrels and the full resumption of Hormuz traffic will be gradual. This means volatility could persist for weeks, with potential spikes on any breakdown in talks. Natural gas markets, particularly in Asia and Europe, are also sensitive to any disruption in LNG tanker movements through the strait.

Looking ahead, traders should watch for Iran's official response and any signs of progress in US-Iran talks. Key data to monitor include weekly US crude inventory reports from the EIA, which will show how domestic supply is adjusting. Also, any statements from OPEC+ members about potential output increases could provide clues on how producers plan to fill any supply gap. The next few days are critical for direction in energy markets.