Why June Is the Oil Market’s Point of No Return

A U.S.-Iran conflict has effectively closed the Strait of Hormuz, disrupting 20% of global seaborne oil trade and creating the largest supply disruption in oil market history. With global inventories draining at record rates and usable reserves depleting rapidly, JP Morgan projects operational stress by early June and potential prices reaching $200+ per barrel. The market faces an unprecedented crisis requiring demand destruction of approximately 11 million barrels per day to match remaining supply.