No Takers Nor Tankers

Geopolitical tensions in the Strait of Hormuz continue to disrupt global shipping and energy markets, even as US-Iran diplomacy fluctuates. Meanwhile, Federal Reserve officials express conflicting views on the impact of AI on future inflation.

Key Takeaways

• 1.Traffic through the Strait of Hormuz remains at reduced levels (around 24% of pre-war transit) due to heightened geopolitical tensions and rising war insurance premiums.
• 2.US-Iran hostilities have escalated with the US commencing strikes on Iranian sites and Iran attacking neighbors; Brent crude prices volatile but retreated to around $76/bbl.
• 3.Divergent views exist within the Federal Reserve regarding the inflationary vs. disinflationary impact of AI on the economy.

Table of Contents

• Market comment
• Day ahead

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