Investing.com -- The reopening of the Strait of Hormuz following a U.S.-Iran interim deal is accelerating a recovery in global oil supply, with UBS estimating that nearly 80% of lost liquids supply will return within three months and around 90% by year-end.

In a note from analyst Henri Patricot, UBS noted that Brent has fallen below $80 per barrel as the market prices in the resumption of oil flows through Hormuz and a production ramp-up across the region.

Average oil and gas crossings through the strait have risen to eight per day since the deal, up from roughly three during May and June, though still well below the approximately 50 recorded before the conflict.

UBS now estimates third-quarter supply losses of 7 million barrels per day, down from a prior estimate of 12 million barrels per day and a peak of 14 million barrels per day over May and June.

The bank cautioned that "restarting production, easing insurance and freight and clearing port and terminal congestions all take time."

On inventories, UBS said global draws have been substantial, with the IEA estimating draws of 74 million barrels in April and 143 million barrels in May.

UBS forecasts total net inventory draws of 1.2 billion barrels, which it said would take "more than 18 months to refill at 2 million barrels per day." It also revised its 2026 balance to a deficit of 1.7 million barrels per day and sees a surplus of 3.7 million barrels per day in 2027, as supply normalization gradually feeds through to demand.