U.S. WTI crude futures settled 54 cents higher at $112.95 per barrel after earlier climbing above $117, while Brent crude edged down 50 cents to $109.27. Price action continues to be driven by disruptions linked to the Strait of Hormuz, which remains largely closed..
Geopolitical risks remain elevated, with continued escalation in infrastructure attacks across the region. The situation has heightened concerns about prolonged supply disruptions, contributing to sharp swings in energy markets and reinforcing inflationary pressures globally.
The broader macro impact is becoming more pronounced, as rising energy prices complicate the outlook for growth and monetary policy. Inflation concerns tied to higher oil prices have led markets to reassess the likelihood of Federal Reserve rate cuts this year, with expectations shifting toward a more cautious policy stance.