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Steve Grasso, director of institutional sales at Grasso Global, highlights that according to JPMorgan, Middle East oil flows have rebounded to 98 percent of pre-war levels as of September 29.
However, only about 80 percent of this oil is being transported through the Strait of Hormuz, with the remainder of Saudi crude redirected via pipelines to the Red Sea. Grasso adds that while the barrels are moving, the conflict in the region has not yet ended and a war premium remains.
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Grasso has previously commented on market moves across different sectors. He noted that AUR shares declined 8% after the company's Investor Day, despite plans to scale up driverless trucks. In an earlier update, he highlighted that new homes have dominated U.S. housing market activity while existing home sales remain limited.