Strait of Hormuz reopens, oil sinks, and the Middle East supply ramp begins

The UN's International Maritime Organization announced Tuesday it will evacuate more than 11,000 sailors stranded in the Strait of Hormuz during the U.S.-Iran conflict. IMO Secretary-General Arsenio Dominguez said 14 seafarers lost their lives during the disruption and described a "large-scale operation" involving the U.S., Iran, Oman and other parties. The evacuation signals the chokepoint is reopening after weeks of paralysis.

Oil prices extended declines as tankers began exiting Hormuz and adding to global supply, according to Reuters. Trump said Iran told the U.S. it is not seeking tolls at the strait. Physical crude markets moved sharply into discount territory as Middle East producers ramped supply back into the market. The repricing is visible across Brent-linked physical grades and U.S. benchmark spreads.

While Hormuz cleared, the broader energy-infrastructure war continued. Ukraine struck a major Russian natural gas plant and satellite centers in long-range attacks, AP reported. A Moscow oil refinery hit by drones is unlikely to resume production this year, Reuters sources said. Russia's parliament approved tax changes to address fuel shortages tied to refinery outages and export restrictions.

Germany carried out raids in a sabotage investigation linked to a former Gazprom unit, AP reported, and train service resumed after a nationwide communication outage that raised questions about infrastructure vulnerability. Taiwan's defense ministry said warning time for any China attack is shortening, adding a Pacific dimension to the global security repricing.

The Hormuz reopening removes the acute supply shock, but the physical market discount and the refinery damage in Russia point to a new equilibrium: more crude available, less refining capacity online, and a wider bid-ask on energy security risk.