- Oil prices rallied, sending stocks lower and whipsawing bonds on worries that higher energy costs will fuel inflation and force the Federal Reserve to boost rates.
- United States Oil Fund gapped up 4.3% to $148.88 as crude prices climbed on Houthi attacks, tanker incidents, and reduced shipping through the Strait of Hormuz.
- U.S. commercial crude inventories unexpectedly fell by 3.2 million barrels to 424.1 million, versus expectations for an increase.
- Tropical Storm Isaias threatened U.S. Gulf production, while storm-related shut-ins already helped lift Brent and WTI.
- Trump said the U.S. won't attack Iran before the November midterms, citing productive discussions, as the Strait of Hormuz blockade holds.
Quotes
“A rally in oil prices rippled through global markets, sending stocks lower and whipsawing bonds on worries that higher energy costs will fuel inflation and force the Federal Reserve to boost rates.”
“Crude prices climbed as Houthi attacks, tanker incidents and reduced shipping through the Strait of Hormuz increased fears of Middle Eastern supply disruptions.”
“Trump says no Iran strikes before Nov. 3 as Strait of Hormuz blockade holds; oil prices react after tanker attack and hurricane risks.”