Global oil markets tighten as Iranian supply disruptions coincide with a rebound in Chinese demand, forcing refiners to compete for limited barrels and pushing prices higher.
Crude oil prices face upward pressure as Iranian supply vanishes from global markets. Simultaneously, China's recovering demand forces independent refiners to seek costlier alternatives, tightening global inventories and elevating geopolitical risks in the Strait of Hormuz.
The loss of Iranian barrels forces buyers to compete for limited alternative supplies, which tightens global inventories and increases the cost of crude oil.