Overview
- Iran’s escalation and threats to the Strait of Hormuz have choked tanker traffic, with freight costs spiking and several operators suspending transits after vessel attacks.
- Brent trades in the low $80s and U.S. crude in the mid $70s after multi‑day gains, while Qatar’s halt of LNG output and reports of regional facility outages add to supply strain.
- President Donald Trump ordered U.S. political‑risk insurance for Gulf shipping and said the Navy may escort tankers if needed, moves that tempered but did not resolve price pressures.
- Global equities fell sharply, led by Asia where South Korea’s Kospi plunged with a brief trading halt; the dollar strengthened and Treasury yields climbed as investors sought safety.
- Rising energy costs are reviving inflation concerns that could delay planned monetary easing, with analysts warning near‑term measures are unlikely to fully offset supply constraints.