WS #15884
Tensions in the Middle East have escalated with Houthi strikes hitting Aramco's Dhahran HQ and sinking a container ship in the Strait of Hormuz. Brent crude remains near $106, and the 12-month future has hit $87.37, the highest since August 2022. While oil prices are elevated, the market's reaction is muted compared to the inflation data, suggesting that the energy supply shock is already priced in and secondary to the monetary policy shock.
Middle East Geopolitics
Tensions in the Middle East have escalated with Houthi strikes hitting Aramco's Dhahran HQ and sinking a container ship in the Strait of Hormuz. Brent crude remains near $106, and the 12-month future has hit $87.37, the highest since August 2022. While oil prices are elevated, the market's reaction is muted compared to the inflation data, suggesting that the energy supply shock is already priced in and secondary to the monetary policy shock.