//The Wire//2300Z June 25, 2026//
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 //BLUF: TWO MAJOR EARTHQUAKES STRIKE VENEZUELA, WIDESPREAD DEVASTATION REPORTED. SEPARATE EARTHQUAKE STRIKES JAPAN. HORMUZ CRISIS CONTINUES AS IRAN STRIKES MERCHANT FOR TAKING UNAUTHORIZED ROUTE THROUGH STRAIT. OIL PRODUCTION SHUT DOWN IN IRAQ DUE TO LACK OF TANKERS TO OFFLOAD CRUDE.//

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-International Events-

Venezuela: Yesterday afternoon two major earthquakes struck just west of Caracas. The first earthquake struck shortly after 4:00pm local time, and was estimated to be a magnitude of 7.2. Less than one minute later, a separate earthquake struck in nearly the same area, measuring a magnitude of 7.5. Widespread destruction has been reported throughout La Guaira, the coastal metropolitan area that was closest to the epicenter of the quakes. Many structures within Caracas also experienced heavy damage, or were destroyed outright by the earthquakes, and major rescue and recovery operations are underway.

Analyst Comment: This disaster is already one of the worst ever recorded in South America, and so far the casualty count is expected to be in the thousands. Right now, the latest figures estimate roughly 11,000 missing with thousands of people currently entrapped within collapsed buildings. Due to the complete devastation throughout much of the region, the true scale of yesterday's earthquakes may take some time to become known, though the videos that have emerged so far indicate devastation on an unfathomable scale.

Japan: Overnight, another earthquake was reported off the coast of the northern province of Iwate. An earthquake with an estimated magnitude of 7.2 struck just offshore, however not much damage was reported due to the remote nature of the epicenter.

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Analyst Comments: In the Middle East, the situation has become complicated on multiple fronts. Firstly, the peace talks continue, which at this point is good news all on it's own, even if rhetoric has been flying all around. None of this rhetoric is trustworthy at the moment, but progress appears to be made toward solidifying a final deal.

Another point of confusion or contention over the past 24 hours has been the complicated management of the Strait of Hormuz. Oil is flowing to some degree, and though the number of tankers transiting crude out of the Gulf is nowhere near historic norms, progress is progress. This progress was briefly derailed this morning, after Iranian forces conducted a drone strike on one vessel which was attempting to take the southern route through Omani waters. Ships have been disregarding Iranian demands to take the northern route for a few days, and this morning Iranian patience apparently ran out, and one vessel was hit. How the US responds to this will be notable, but right now the complicating factors are the discrepancies of which routes are being used by ships.

More broadly, global oil futures have fallen sharply since the announcement of the MOU being signed, and gas prices are subsequently falling. However, gas prices still remain at around $4.00 per gallon nationwide, because there is still a large discrepancy between the futures prices, and the actual delivery price of crude that is being pumped off of tankers into the United States right now. As a result it is important to understand how long this recovery process will take. For instance, yesterday the West Qurna 2 petroleum facility in Iraq (one of the largest oil fields in the world) had to shut down production, because their storage tanks are full, and there are no tankers available to load onto for export. This is simply due to timing...nothing moves fast when it comes to moving tankers around the world. This is why the world may breathe a sigh of relief that the war appears to be over at this point, but we're not out of the woods just yet. The next major questions will be whether or not the complex balance of oil production and maritime shipping can stabilize before the more serious impacts arrive. And now that the Iranians have continued to demonstrate that they are willing to enforce their control of the Strait with explosives, this crisis is certainly not over.

Analyst: S2A1
 Research: https://publish.obsidian.md/s2underground
Disclaimer: No LLMs were used in the writing of this report.
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