Wall Street is increasingly focused on rising oil prices as the primary driver of the economy and markets amid the Middle East conflict.
Brent crude (BZ=F) futures surged to $100 per barrel last week, with the war in Iran "creating the largest supply disruption in the history of the global oil market," according to the International Energy Agency.
Gasoline, diesel, and jet fuel prices have surged, threatening to squeeze consumers and businesses. With oil prices more than $25 per barrel higher than before the war began, Wall Street is now factoring rising energy costs into inflation expectations, bond yields, and overall risk appetite.
"Crude is the straw that stirs the drink right now," wrote Charlie McElligott, managing director of global equity derivatives for Nomura Securities in a client note.
Source: coinfanking