Iran is requiring ships to obtain its permission to pass through the Strait of Hormuz, the CEO of the United Arab Emirates' state-owned oil company said. "The Strait of Hormuz is not open," Sultan Ahmed Al Jaber said.
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Oil's rally has been a boon for family offices who invested in oil after traditional investors stepped away from the sector in part due to ESG pressures. While many investment firms of the ultra-wealthy are environmentally conscious, family offices are not subject to shareholder mandates to divest from oil and gas.
Asia faces oil shock pressure, but stronger reserves reduce crisis risk. Economists said this was a supply shock, not a financial crisis like the one in 1997.
Traders wary that traffic through the Strait of Hormuz is still restricted.
Goldman Sachs is warning of a painful gas squeeze as much of Qatar's supply remains offline. Qatar's liquefied natural gas infrastructure is severely damaged.
The price for actual Brent oil cargos came in above $120 per barrel on Wednesday, nearly $30 more than the June futures contract. The spot price shows that oil supplies will stay tight for some time, even if the ceasefire agreement holds.
The Iran crisis threatened “the largest geopolitical oil supply disruption in history,” the Dallas Fed warned.
Cheaper U.S. natural gas is a bright spot for consumers in otherwise dim energy markets. But the contrast is so stark it has created an anomaly.
Of the S&P 500's top 20 biggest decliners, 19 companies are in either the oil and gas or the fertilizer business, and the other one is in agriculture.
West Texas Intermediate and Brent crude slid following the announcement of a temporary truce between the U.S. and Iran