Updated
Updated · Eye on Housing · Jul 3
US, Iran Sign Hormuz MoU, Reopening Strait Toll-Free Through Mid-August
Updated
Updated · Eye on Housing · Jul 3

US, Iran Sign Hormuz MoU, Reopening Strait Toll-Free Through Mid-August

3 articles · Updated · Eye on Housing · Jul 3

Summary

  • The preliminary US-Iran memorandum temporarily reopened the Strait of Hormuz to commercial shipping on a toll-free basis through mid-August, creating room for further nuclear negotiations.
  • June mortgage rates still climbed as markets priced in possible Fed tightening: Freddie Mac's 30-year fixed average rose 8 basis points from May to 6.49%, while the 15-year rate reached 5.82%.
  • High inflation and a stronger-than-expected labor market pushed the 10-year Treasury yield above 4.5% in mid-June, and nine of 18 Fed officials later signaled at least one rate hike this year.
  • That benchmark eased to about 4.44% by month-end after the Hormuz deal, but 30-year mortgage rates remained 44 basis points above their level before the Middle East conflict began.

Insights

Is the fragile US-Iran deal a false dawn before another oil shock sends interest rates soaring?
Are central banks using the right tools to fight inflation driven by foreign supply shocks?
Can the global shift to clean energy finally break the economic hold of Middle East oil conflicts?