US Reports Continued Middle East Oil Production Shut-Ins Through Summer

The US Energy Information Administration reported that shut-in crude oil production in the Middle East remains higher than earlier projections, citing continued severe constraints on transits through the Strait of Hormuz that have persisted since the conflict in Iran began earlier in the year.

The agency’s outlook assumes most regional production will return to near pre-conflict levels only in early 2027, with roughly 0.6 million barrels per day of disruption expected to continue affecting global supply through the end of the year, keeping upward pressure on prices.