White House Rejects Ceasefire, Brent Oil Returns to $90: A Second Act of the Energy Crisis Begins
Beyond U.S. stocks, another market is quietly rioting: crude oil.
Brent crude oil climbed back above $90 overnight, up nearly 3%; WTI also rose 1.6%, to $83.5.
The trigger is straightforward: the White House refused to restore the ceasefire agreement with Iran, and expectations of a diplomatic deal between the U.S. and Iran were completely dashed.
Adding fuel to the fire, Russian refineries were hit and forced to shut down, while U.S. diesel inventories fell to the lowest level for the same period on record—refined product supply risk is directly pushed to the limit.
And on top of that, shipping volumes through the Strait of Hormuz have only recovered to 75% of pre-war levels; every drop of oil has become precious.
Yesterday, tech stocks sucked the air out of the room; today, energy stocks and inflation expectations are up on stage calling out for attention.
The moment oil prices rise, the Fed gains another ounce of confidence to keep raising rates. Tonight, Wall speech at Jackson Hole will be delivered by him—pressure is entirely on his shoulders. $CL
Beyond U.S. stocks, another market is quietly rioting: crude oil.
Brent crude oil climbed back above $90 overnight, up nearly 3%; WTI also rose 1.6%, to $83.5.
The trigger is straightforward: the White House refused to restore the ceasefire agreement with Iran, and expectations of a diplomatic deal between the U.S. and Iran were completely dashed.
Adding fuel to the fire, Russian refineries were hit and forced to shut down, while U.S. diesel inventories fell to the lowest level for the same period on record—refined product supply risk is directly pushed to the limit.
And on top of that, shipping volumes through the Strait of Hormuz have only recovered to 75% of pre-war levels; every drop of oil has become precious.
Yesterday, tech stocks sucked the air out of the room; today, energy stocks and inflation expectations are up on stage calling out for attention.
The moment oil prices rise, the Fed gains another ounce of confidence to keep raising rates. Tonight, Wall speech at Jackson Hole will be delivered by him—pressure is entirely on his shoulders. $CL
