Trump Restarts Hormuz Blockade on Iranian Ships as Brent Tops $83 and Fed Hike Odds Hit 50%
Updated
Updated · Bloomberg · Jul 14
Trump Restarts Hormuz Blockade on Iranian Ships as Brent Tops $83 and Fed Hike Odds Hit 50%
3 articles · Updated · Bloomberg · Jul 14
Summary
Brent crude rose above $83 after Donald Trump said the US would restart a blockade on Iranian ships transiting the Strait of Hormuz and charge other cargo using the waterway.
The move deepened fears that clashes around Hormuz could disrupt energy supplies, revive inflation pressure and force the Federal Reserve to tighten again.
Money markets then priced roughly 50% odds of a July Fed rate hike after Governor Christopher Waller said officials may need to raise rates to contain price pressures.
Stocks and bonds both fell—halting the S&P 500's two-day advance—as higher oil and renewed rate fears hit risk assets, with a chipmaker selloff adding pressure.