WS #16382
Brent crude has jumped to a five-month high, exceeding $114 per barrel, driven by Houthi strikes in Saudi Arabia and Iranian IRGC attacks on vessels in the northern Gulf and near the Strait of Hormuz. Insurance costs for cargo have spiked to 10% of value, and freight rates are estimated above $20/bbl, reflecting severe supply chain friction. Tehran has threatened to strike Gulf oil facilities, undersea cables, and data centers if attacked, raising the stakes for global energy and digital infrastructure. This escalation dampens bullish equity sentiment and pressures consumer discretionary sectors reliant on stable logistics.
Middle East Oil Supply Shock
Brent crude has jumped to a five-month high, exceeding $114 per barrel, driven by Houthi strikes in Saudi Arabia and Iranian IRGC attacks on vessels in the northern Gulf and near the Strait of Hormuz. Insurance costs for cargo have spiked to 10% of value, and freight rates are estimated above $20/bbl, reflecting severe supply chain friction. Tehran has threatened to strike Gulf oil facilities, undersea cables, and data centers if attacked, raising the stakes for global energy and digital infrastructure. This escalation dampens bullish equity sentiment and pressures consumer discretionary sectors reliant on stable logistics.