WS #14976
The Trump administration's rejection of Iran's plan to reopen the Strait of Hormuz has escalated the Middle East crisis, causing Brent crude to surge past $107. This supply shock is driving inflation fears and reinforcing the narrative of persistent rate hikes, as evidenced by the spike in 30-year Treasury yields to 5.535%. The resulting volatility is weighing heavily on global equities, with US futures down and Asian markets sinking to April lows.
Hormuz Crisis and Energy Shock
The Trump administration's rejection of Iran's plan to reopen the Strait of Hormuz has escalated the Middle East crisis, causing Brent crude to surge past $107. This supply shock is driving inflation fears and reinforcing the narrative of persistent rate hikes, as evidenced by the spike in 30-year Treasury yields to 5.535%. The resulting volatility is weighing heavily on global equities, with US futures down and Asian markets sinking to April lows.