U.S.-Iran Strikes Put $100 Oil Back in Focus
Asia Spot LNG Prices Hit 5-Month High as Hormuz Blockage Drags On Trump's 65-billion-barrel Venezuela oil deal… Tom majored in International Business at Amsterdam’s Higher School of Economics and later completed an Executive MBA in Energy Transition at the University of Groningen.… U.S.-Iran strikes reignite fears of a prolonged Middle East conflict as Hormuz tensions push regional oil benchmarks above $100.
Rising Bond Yields Turn Oil’s Rally Into a Demand Risk -Global bond yields havesurgedto their highest since 2008, as rising oil prices perpetuate fears of longer-than-assumed inflation, in turn creating a cycle of lower demand further down the road.
- The rally in bond yields started in earnest after new Federal Reserve chairman Kevin Walsh vowed to finally tame US inflation, currently at 3.4%, sending yields on the 10-Year Treasury bonds to 4.76%.
- The bond spiral extended into other developed economies, with rates on 10-year Japanese bonds touching a 30-year high and moved above 3%, whilst 10-year UK bonds surged to 5.2%.
- Higher yields raise borrowing costs for households and companies, slowing vehicle purchases, air travel, construction, manufacturing and freight – all leading to demand destruction – whilst simultaneously pushing up the cost of drilling, pipelines and large upstream developments.
- Marking a return to contractionary monetary policy, the market ispricingan almost 60% chance that the Federal Reserve will hike rates by a quarter-point at its meeting this month.
- US midstream giantONEOK(NYSE:OKE) hasacquiredBrazos Midstream's natural gas gathering and processing assets in West Texas for a consideration of $4.4 billion, boosting its gas processing capacity by 1.2 bcf/d.
- Oil majorsShell(LON:SHEL) andChevron(NYSE:CVX) have signed a preliminary agreement with the government of Ghana to enter the South Deepwater Tano oil block, in water depths of 3,000m, the country's first new offshore license since 2018.
- Norway's state oil firmEquinor(NYSE:EQNR) hassignedits 2ndbinding offtake agreement, alongside project partner Standard Lithium, for the SW Arkansas lithium project, with the LG Energy Solution contract marking a major step towards an FID later this year.
- UK-listed upstream specialistEnergean(LON: ENOG) isreportedlyin exclusive negotiations with UK major BP (NYSE:BP) to acquire part of the latter's Egyptian upstream portfolio, in a deal valued around $1 billion.- Norwegian upstream firmDNO(OSL: DNO) isset to buyUK upstream independent Capricorn Energy for $0.4 billion after outbidding the offer of Kurdistan-focused driller Genel Energy, boosting its portfolio with assets in onshore Egypt.
The first exchange of direct US-Iran attacks in a month has reignited fears that conflict in the Middle East might well last into 2027, with US President Trump threatening further strikes after its attack on Larak Island.
Washington’s sanctions on Tehran are making Hormuz transits ever more difficult, with Saudi Aramco’s attempt to boo.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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