Strait of Hormuz remains closed, supporting higher energy prices
March 5, 2026
The DOE inventory report had crude oil inventories up 3.48 million barrels, gasoline down 1.70 million, and distillates up 430,000 barrels. Total crude inventories are now at 439.279 million barrels and last year they were 433.775 and the three-year average is 453.606.
Total gasoline supplies are now at 253.130 and last year they were 246.838 and the three-year average is 241.547.
Total distillates are now at 120.780 and last year they were 119.154 and the three-year average is 119.472.
Propane inventories were up 819,000 barrels, putting total supplies at 73.351 million. Last year they were 48.654 million and the five-year average was 46.844 million barrels.
Midwest supplies were down 109,000barrels, putting total Midwest stocks at 13.806 and last year they were 10.414 and the five-year average is 10.875.
Ships are not moving through the Strait of Hormuz for fear of attack. US Energy Secretary, Chris Wright, said the US Navy is currently focused on the Iran conflict, and it will escort oil tankers through the Strait of Hormuz “as soon as it can.” This news is supporting higher prices as traders still worry about supply disruptions.
Bloomberg reported that the war with Iran is threatening the global economy. Sustained higher energy prices could push the economy in Europe to the brink of recession, while in the US, the Federal Reserve would be stuck between a war that pushes inflation higher and a president demanding that interest rates come down and in China, it would strain the economy further with the end of discounted Iranian oil.