– Israel’s attack on Iran, resulting in at least 80 deaths and assassinating several top-ranking IRGC commanders, have roiled the oil markets as ICE Brent futures posted their largest single-day jump since the Russian invasion of Ukraine in late February 2022.
– Iranian media reported that upstream and midstream infrastructure was not damaged, including the Kharg island loading facility that oversees 90% of Iran’s crude oil exports, suggesting that Iranian supply will not be curbed anytime soon.
– The Israeli attack led to fears that Iran might retaliate by blocking navigation via the Strait of Hormuz, a key chokepoint for energy flows as roughly 20% of global LNG and 25% of global oil trade needs to pass through it.
– Europe’s merchant fleets have been advised to avoid the Gulf of Aden and the Red Sea as attacks on Western commercial ships might restart, just a month after the Trump administration concluded a ceasefire deal on maritime attacks with the Houthis.
Shuttering Refineries and Importing More, California’s New Reality- California’s fuel inflows from abroad rose to the highest in four years, foreshadowing the Golden State’s increasing dependence on imports as two major refineries are set to close over the next 12 months.
– Phillips 66 is expected to shutter its 140,000 b/d Los Angeles refinery in October 2025, whilst Valero Energy is set to close its 145,000 b/d.
