JD Vance expects oil flows from Gulf to return to pre-conflict levels

The world’s most important oil chokepoint is open for business again, and Vice President JD Vance wants everyone to know it. Vance confirmed that Iran has agreed not to impose tolls on oil transiting the Strait of Hormuz, a commitment formalized as part of a memorandum of understanding between Washington and Tehran reached around mid-June 2026. The announcement matters because roughly a fifth of the world’s seaborne oil supply passes through this narrow corridor between Iran and Oman. When it gets complicated, energy markets feel it immediately and everywhere. What the deal actually says The United States agreed to lift its naval blockade on Iranian ports and temporarily waive certain oil sanctions. Iran, in return, committed to keeping the Strait of Hormuz open and toll-free for oil transit. Daily oil volumes through the strait climbed to between 12.5 million and 16 million barrels during the period following the agreement, according to the research findings. That’s a meaningful recovery from wartime lows, though it still falls short of the roughly 20 million barrels per day that moved through the strait before the conflict began. Vessel traffic tells a similar story. Total ship p...