July WTI Crude Oil futures posted a dramatic decline, dropping 5.51 percent to mark the worst one-day move since late May. The selloff follows news that the Strait of Hormuz is set to reopen on Friday after a memorandum of understanding is signed between the U.S. and Iran. While markets have priced out much of the conflict risk, disputes over maritime service charges are prompting shipping companies to delay tanker traffic. Furthermore, returning to pre-conflict supply levels will take time, with the EIA projecting shipments will not normalize until early 2027 due to infrastructure damage and significant production drops during the conflict.