A Critical Week for Oil
Macquarie strategists said this was a critical week for oil because key actors in the U.S.-Iran War are meeting in New York, and the outcomes may determine whether the war continues and intensifies or an off ramp is found. A McKinsey report identified the on-and-off closure of the Strait of Hormuz as the most consequential in a succession of disruptions reshaping global energy and its flows. The strategists also noted that the direction of crude oil prices bears on inflation and central bank decisions, with central banks citing energy prices or geopolitics as drivers.
Why it matters: This matters for the theme of energy security, as the reports show how oil price volatility and chokepoint disruptions are shaping central bank policy and global trade.