Tensions in the Strait of Hormuz have escalated, threatening a renewed oil supply crunch as shipments through the vital waterway, which carries approximately a fifth of global oil, have largely ceased. This comes after the International Energy Agency announced its member countries had depleted nearly three-quarters of the 400 million-barrel emergency stock release initiated in March, leaving limited buffer supplies.

Oil prices surged above $87 on Tuesday, reaching a month-long high, after a brief dip following an initial ceasefire announcement. Traders expressed concern over the depleted reserves, with one noting, "We’ve burned through all of the buffers we had. Everything."

In other energy news, New York is set to implement a one-year ban on new data center construction, a move Governor Kathy Hochul enacted due to growing concerns over the power demands of AI infrastructure. Concurrently, geopolitical tensions are rising over critical minerals, with China dominating the supply chain for essential elements like yttrium, crucial for AI chip production. This has led to a scramble for resource nationalism as countries seek to secure their own supply chains.