US President Donald Trump reinstates the US blockade of Iranian ships transiting the Strait of Hormuz and demands a 20% reimbursement fee for other cargo using the waterway, according to Bloomberg reports. The move occurs amid market sensitivity to supply and shipping risks in one of the world’s most important oil chokepoints. Brent crude futures rise, moving above $85 per barrel for the first time in about a month, reflecting higher expectations for potential impacts on oil flows.
At the same time, financial markets focus on upcoming US economic and central-bank developments. Traders largely hold back on major positioning ahead of US inflation data and testimony by Federal Reserve Chair Kevin Warsh to Congress. Interest-rate expectations remain centered on the possibility of a July rate increase, with bond and swap markets pricing a chance of a hike. Fed Governor Christopher Waller signals that additional rate hikes could be warranted if inflation continues to show broad-based price pressures.
The reports also note that the start of US earnings season is imminent, with large banks scheduled to begin reporting later, adding another catalyst to a busy day for investors.
