WS #14969
Geopolitical tensions have escalated from a stalemate to active conflict, with the US rejecting a 7-day Iranian ceasefire and reports confirming 19 vessels struck in the Strait of Hormuz. This supply shock has sent Brent crude surging above $105 and UK diesel to record levels of 199.18p/litre, stoking immediate inflation fears and forcing central banks like the RBA to consider rate hikes. The market is now pricing in a prolonged disruption to global shipping and energy flows.
Hormuz Escalation and Energy Shock
Geopolitical tensions have escalated from a stalemate to active conflict, with the US rejecting a 7-day Iranian ceasefire and reports confirming 19 vessels struck in the Strait of Hormuz. This supply shock has sent Brent crude surging above $105 and UK diesel to record levels of 199.18p/litre, stoking immediate inflation fears and forcing central banks like the RBA to consider rate hikes. The market is now pricing in a prolonged disruption to global shipping and energy flows.