WS #15548
President Trump announced on Truth Social that the US will not attack Iran prior to the November 3rd midterms, citing productive discussions with the Islamic Republic. This explicit de-escalation signal has calmed markets regarding the Strait of Hormuz, where CENTCOM reports tanker traffic has returned to prewar levels of 20 million barrels per day under escort. While this dampens the immediate risk of a supply shock, Brent crude remains elevated from previous Houthi strikes, keeping energy stocks in a supportive but cautious position.
Geopolitical De-escalation and Energy
President Trump announced on Truth Social that the US will not attack Iran prior to the November 3rd midterms, citing productive discussions with the Islamic Republic. This explicit de-escalation signal has calmed markets regarding the Strait of Hormuz, where CENTCOM reports tanker traffic has returned to prewar levels of 20 million barrels per day under escort. While this dampens the immediate risk of a supply shock, Brent crude remains elevated from previous Houthi strikes, keeping energy stocks in a supportive but cautious position.