The Strait of Hormuz is finally reopening, but energy flows may not get back to normal until next year

The Strait of Hormuz is set to fully reopen under a U.S.-Iran agreement, but energy flows may take until 2027 to normalize due to disrupted supply chains, rerouted tankers, and lingering insurance and safety risks. Global oil supplies lost 2 billion barrels in three months, prompting reserve draws and rationing, with markets facing prolonged constraints despite the reopening.