Most Crude Oil Output Expected to Return to Near Pre-Conflict Levels by Year-End

Most crude oil output is expected to return to near average pre-conflict levels by the end of this year. According to Jin10, the U.S. Energy Information Administration said in its Short-Term Energy Outlook that the United States and Iran signed a memorandum of understanding on June 18 to end the conflict and open the Strait of Hormuz. The agency said that, with the agreement signed and traffic through the strait increasing, it raised its expectation for global oil production for the rest of this year. It added that most shut-in crude oil production is expected to come back online in the first quarter of 2027.