Oil Market Set to Struggle Amid Middle East Conflict

The global oil market faces ongoing challenges due to the Middle East conflict, with supply disruptions persisting despite potential peace talks between the U.S. and Iran. Delays in resuming shipments mean storage tanks will continue to be depleted, as oil companies struggle to meet peak summer demand.

Temporary buffers are running low, and the full impact on oil supplies is yet to be seen. Analysts and energy executives warn that the global energy system is entering the summer period in a weakened state, stressing the recovery timeline for supply shortages and high fuel prices.

Even as oil futures drop with progressing peace talks, physical crude and gasoline prices may remain high for some time. Analysts note a significant drop in global inventories, emphasizing unprecedented disruptions to oil and natural gas supplies as the conflict continues to affect markets worldwide.

(With inputs from agencies.)