Inventory drops to decades low, US oil reserves struggle to cope with restart of US Iran conflict According to Golden Finance, on July 9th, the US oil reserve system was far from ready to respond to the rupture of the US Iran ceasefire agreement and the resumption of conflict. After President Trump announced a temporary ceasefire in mid June this year, international oil prices fell back to pre war levels, and tanker shipping in the Strait of Hormuz gradually resumed. However, it will take a long time for crude oil inventories to fill the gap. According to data from the US Department of Energy, commercial crude oil inventories in the United States increased by 3 million barrels in the week ending last Friday, marking the first rebound after ten consecutive weeks of decline. Now that Trump has announced the termination of the ceasefire agreement, the energy market situation may further deteriorate. Andy Lipo, President of Houston Lipo Oil Consulting, said, "The most worrying situation in the oil market later this year is likely to come true when inventory drops to the operating bottom line." He said, "Only when oil prices rise and market demand shrinks, can supply and demand return to balance. Once inventory is completely depleted, the market will have no buffer resources available." Energy industry executives and analysts currently do not predict a repeat of the oil crisis where oil prices broke through $100 per barrel this spring, but they warn that if shipping in the Strait of Hormuz is blocked again - about 20% of global oil trade passes through the strait - the energy security of the United States will be severely threatened. If the United States is forced to continue using its strategic reserve of crude oil, it will lack sufficient reserves for emergency backup in the event of a global oil supply interruption or natural disasters such as hurricanes impacting the fuel supply chain; Oil prices will also rise again, forcing consumers and buyers to reduce their oil demand.