Brent tops $104 on fresh U.S.-Iran escalation: Pentagon drawing up Iran strike options, tanker struck off Qatar
What happened
Brent crude jumped about 4% Thursday morning to top $104 a barrel and WTI rose above $91.50, per the WSJ, as the White House asked the Pentagon to develop options for strikes against Iran ahead of the midterm elections next month, according to a report in The Atlantic. Separately, a tanker was struck off the coast of Qatar according to United Kingdom Maritime Trade Operations, Houthi militants escalated attacks on Saudi Arabia, and Shell and Chevron halted production at several Gulf of Mexico sites as a tropical storm approached. U.S. stock futures slid (Dow -0.7%, S&P -0.3%, Nasdaq -0.5%) and the 30-year Treasury yield rose 5 bps to top 5.710% as oil-driven inflation fears compounded an already hawkish rate backdrop.
Why it matters & what’s next are part of Pro, along with the audio summary.
Start your free 14-day trialWho’s affected
- XLE/energy producers (positive exposure to higher crude)
- Airlines, transportation and consumer-discretionary (fuel-cost headwind)
- Broad equities via inflation -> higher-for-longer yields
Sources