10 Jul 2026
US energy market commentary, June
Rob Palmer
Head of Energy Futures Clearing Sales, North America
Sasha Foss
Energy Markets Analyst, CSC Commodities
Oil prices fall as Strait of Hormuz reopens
The international benchmark for crude oil, Brent futures continued to decline in June, falling from $95/b at the start of the month to $73/b by month-end. The drop followed both the anticipated and actual reopening of the Strait of Hormuz after the US and Iran agreed to a Memorandum of Understanding on June 17. A final agreement is expected to be negotiated during the 60 days following the signing.
Ongoing regional security incidents continued to disrupt activity in the Strait, although at a significantly reduced rate, as Iran sought to maintain control over traffic through the waterway. Vessel movements remain well below pre-conflict levels. However, the expansion of alternative shipping routes, vessels returning to the market, lower Chinese import demand, increased production outside the Gulf and demand destruction have all contributed to a sharp decline in crude prices.
The futures market has also weakened, with contracts for later delivery now trading above those for immediate delivery often a sign that supply is outpacing demand. Production across the Gulf resumed quickly, adding to already ample supplies. Market participants are now watching China’s import activity closely to see whether lower prices will encourage additional purchases and the rebuilding of stockpiles that were drawn down during the crisis.
FERC rules large-load interconnection processes inadequate
The Federal Energy Regulatory Commission (FERC) has stated that grid operators must provide greater justification for connecting data centers and other large electricity loads to the grid. The regulator is seeking to protect consumers while supporting the US leadership position in artificial intelligence and innovation.
FERC noted that significant differences exist across the country’s six regional grid operators and that a one-size-fits-all national approach would be inappropriate. Instead, large-load integration projects should be assessed on a case-by-case basis.
The rapid expansion of data centers follows years of flat or declining electricity demand. Policymakers are increasingly concerned about the potential impact on consumer electricity bills and the resulting political pressure. By adopting a regional approach, FERC is also seeking to avoid disputes over state and federal jurisdiction. The regulator further acknowledged the greater operational flexibility of data centers compared with traditional large industrial loads.
DOE to provide $17.5 billion in loans for nuclear reactors
The Department of Energy (DOE) announced that it will offer $17.5 billion in loans to energy companies and utilities to support the development of 10 nuclear reactors across five sites according to Energy Secretary Chris Wright.
Wright said the financing could accelerate development timelines by up to three years, supporting the administration’s goal of revitalizing the domestic supply chain required to build large-scale commercial reactors.
The initiative aligns with The US Administration’s 2025 executive order, which set a target of adding 300 GW of new nuclear generation capacity in the US by 2050.
