According to the U.S. Energy Information Administration (EIA), global oil inventories have dropped to their lowest levels since at least 2003 due to ongoing conflict in the Middle East, particularly affecting the Strait of Hormuz. This situation has led to significant reductions in oil output, with more than 11 million barrels per day lost since the onset of the conflict. Major oil-consuming nations, including China, the United States, and India, are rapidly depleting their oil reserves in response to this crisis. The EIA forecasts that the prices of petroleum products will see substantial increases, with diesel and aviation jet fuel prices expected to rise by over 60% in 2026 and 40% in 2027. Similarly, wholesale gasoline prices are projected to increase by 50% in 2026 and nearly 40% in 2027. The report indicates that maritime traffic through the Strait of Hormuz will likely remain closed in the near term, with oil shipments anticipated to resume by the third quarter of 2026. However, returning to pre-conflict production levels may take several months, pushing the timeline to early 2027.