The Strait of Hormuz remains closed, disrupting global oil flows—but strategic reserves have cushioned the blow, at least so far. According to Axios, U.S. commercial crude inventories are draining rapidly, falling over 7 million barrels in just one week. Analysts warn that if the strait doesn't reopen soon, oil prices could spike dramatically. Investment firm Macquarie estimates Brent crude could hit 130 to 150 dollars a barrel by Labor Day if the closure continues. Should the conflict extend into 2027, prices could approach 200. President Trump said this week that a deal with Iran is imminent, though negotiations remain uncertain. The real threat: when strategic reserves run too low, there's nothing left to cushion the market—and gas prices could surge right before the midterm elections.

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