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Brent regains $86 as Hormuz risk and rate worries lift oil prices
Brent rose above $86 this week, with crude up about 40% since January, while the Strait of Hormuz disruption coincided with a higher 2-year Treasury yield and renewed Fed rate cut doubts.
Oil prices moved higher as renewed disruption risk in the Strait of Hormuz and inflation-linked rate concerns pulled energy markets. Iran’s Revolutionary Guard declared the waterway closed again on July 11, and the U.S. carried out three straight nights of strikes afterward, leaving roughly a fifth of world seaborne oil trade moving in a trickle or not at all.
Brent climbed back above $86 this week, reaching a one-month high, and crude is up around 40% since January. The same supply fears that lifted oil also pushed the 2-year Treasury yield to a 16-month high, with energy-driven stickier inflation increasing market caution about the Fed cutting rates.
OilPrice says markets cooled somewhat after a cooler June inflation print trimmed expectations for a July move, but they still lean toward at least one rate increase before year-end. The outlet ties the concern to Federal Reserve leadership, noting Kevin Warsh’s stance that inflation over the last five years should be treated as something to end.
In this setup, OilPrice highlights an approach for picking energy exposure, favoring companies leveraged to the crude surge while also weighing whether they can survive without a friendly credit market. The piece adds that American crude and fuel exports are hitting record highs as Asian buyers pivot to U.S. barrels.
Latest closeWTI crude $79.90 ▲2.2%|Brent $85.36 ▲2.5%