## Market Snapshot The market for “Strait of Hormuz traffic returns to normal by June 15” is currently priced at 7.5% YES, down from 10% in the last 24 hours. The WTI Crude Oil market has seen an increase in implied likelihood due to the reported supply shock, while the Bab el-Mandeb Strait closure remains irrelevant with a 0.5% YES.
## Key Takeaways – The rapid decline in global oil reserves suggests increased likelihood of shortages and rationing, consistent with the Strait of Hormuz remaining constrained. – Market activity supports a decrease in the probability of normal traffic resumption in the Strait of Hormuz by mid-June. – Rising oil prices are implied by the severe supply disruption, influencing WTI Crude Oil market expectations.
## Article Body Global oil reserves are reportedly falling at an unprecedented rate due to the effective closure of the Strait of Hormuz, a vital passage for 20% of the world’s oil shipments. This development is part of the ongoing Iran–U.S./Israel conflict, with significant military postures affecting oil and LNG flows. The Strait’s closure represents one of the largest oil supply shocks in history, potentially leading to widespread shortages and rationing if the situation does not resolve soon. As tensions rise, the geopolitical landscape around the Strait continues to be a critical point of concern for international energy security.
