Oil Market's Seaborne Buffer Shrinks Rapidly Amid Iran War, US Eyes Iranian Barrels

• Oil stored at sea, a vital market buffer, is rapidly depleting as Persian Gulf supply remains constrained for a third week.
• Floating storage of crude oil and condensate has fallen by 1.8 million barrels a day since the war began, now at 78 million barrels.
• The US is considering removing sanctions on seaborne Iranian barrels, with Treasury Secretary Scott Bessent estimating 140 million barrels of Iranian oil at sea.
• This potential move aims to turn Iran's floating storage into prompt supply, but finding buyers beyond China's 'teapots' presents challenges.
• Experts warn that even large floating volumes only equal a few days to a week of global demand, and a prolonged disruption could lead to an economic crisis.