The return of oil tankers through the Strait of Hormuz has not lowered crude prices as expected. Global crude-futures benchmark rose 4.4% to $102.31 a barrel, while U.S. gas prices remained above $4.41 a gallon. The 10-year Treasury yield hit a 24-year high, signaling persistent inflationary pressure.
Supply chain bottlenecks and geopolitical risks continue to squeeze the oil market, raising costs across industries. The Federal Reserve may consider further rate hikes as inflation remains above target. Despite U.S. efforts to degrade Iran’s capabilities, shipping data remains opaque, with tankers evading tracking or transferring cargoes.
Renewed strikes by Iran or its proxies add risk premium to oil prices. Inventories are low, and refiners are scrambling to secure short-term supplies. North Sea dated crude fetched $127.42 a barrel.
J. P. Morgan notes the recovery in oil shipments is uneven, especially for refined products.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing