The ongoing conflict in Iran has severely disrupted oil transportation in the Persian Gulf, leading to a rapid depletion of global oil inventories. With the Strait of Hormuz nearly closed for two months, over one billion barrels of supply have been lost, significantly eroding buffer stocks meant to protect against supply shocks. This depletion heightens the risk of extreme price spikes and supply shortages. Morgan Stanley reports that from March 1 to April 25, global oil inventories fell by an average of 4.8 million barrels per day, surpassing previous records. Crude oil accounted for nearly 60% of this decline. Natasha Kanew from JPMorgan highlighted that strategic reserves are nearing their unusable portion, indicating a critical point in inventory levels.