Finance

Energy markets remain volatile as the ongoing military conflict between the US and Iran maintains a blockade on the Strait of Hormuz. While crude prices recently dipped to around $102 per barrel on hopes for a diplomatic resolution, experts warn that a continued closure could eventually push prices above $150. Global economies are currently drawing down emergency stockpiles to mitigate the supply disruption.

The 10-year US Treasury yield pulled back to approximately 4.38% as a slight easing in energy costs softened short-term inflation expectations. However, the Federal Reserve remains in a hawkish posture, with recent meeting minutes showing internal division and three members dissenting against adding any easing bias. Markets are currently pricing in the possibility of the central bank holding interest rates steady through the middle of 2026.

The Q1 2026 earnings season is past the halfway mark, with the S&P 500 on track for its sixth consecutive quarter of double-digit profit growth. While sectors like Information Technology and Financials are leading the advance, some consumer-facing companies have withdrawn forward-looking guidance due to uncertainty. Major oil producers Exxon and Chevron also reported strong results, benefiting from elevated crude prices despite operational war disruptions.