·
Oil
prices fluctuated after the United States and Iran exchanged attacks for a
second consecutive day, raising fears of a wider regional conflict.
·
The
U.S. struck multiple targets in Iran, while Iran claimed retaliatory attacks on
U.S. bases in Kuwait and Bahrain.
·
Despite
escalating tensions, oil markets have shown a relatively muted reaction so far.
·
Brent
crude rose sharply initially but later eased, trading between $92–93 per barrel.
·
West
Texas Intermediate (WTI) crude traded slightly lower at just under $90 per barrel.
·
Markets
remain focused on risks to shipping through the Strait of Hormuz, which carries nearly
one-fifth of global oil supplies.
·
U.S.
stock futures indicated gains despite geopolitical tensions.
·
Asian
markets were largely stable, with modest gains in Japan and South Korea and a
slight decline in Taiwan.
·
European
equities advanced, with the STOXX
Europe 600 rising about 0.5%.
·
U.S.
gasoline prices declined slightly to an average of $4.13 per gallon.
·
Diesel
prices fell to $5.28 per
gallon, though they remain significantly higher than before the
conflict.
·
Retail
fuel prices generally lag changes in crude oil prices by several days.
·
Rising
energy costs are increasing inflationary pressures globally.
·
Diane
Swonk of KPMG warned that inflation risks are becoming more entrenched and may
require tighter monetary policy.
·
The
U.S. Federal Reserve is expected to face growing pressure to raise interest
rates later in 2026 despite political calls for rate cuts.
·
The
European Central Bank was expected to become the first major central bank to
raise interest rates since the Iran conflict began.
·
The
conflict highlights the vulnerability of global energy markets to geopolitical
tensions in the Gulf region.
·
Disruptions
in the Strait of Hormuz could significantly impact global oil supply,
inflation, shipping costs, and monetary policy decisions worldwide.
[ABS News Service/11.06.2026]
Oil
prices were volatile on Thursday (11.06.2026) after the United States and Iran exchanged
fire for a second straight day, heightening fears that the two countries could slide
back into broader conflict.
The
United States said it had struck multiple targets across Iran after President Trump
vowed to maintain military pressure because negotiations with Iranian leaders over
its nuclear program were moving too slowly. Iran said it retaliated with two waves
of attacks on targets at U.S. bases in Kuwait and Bahrain, though there was no immediate
confirmation of the strikes.
Despite
the escalating tensions, oil markets had remained relatively subdued in recent days,
showing little reaction since the downing of a U.S. Army Apache helicopter near
the Strait of Hormuz on Monday.
Oil prices seesaw.
·
The
price of Brent crude, the global benchmark for oil, rose sharply in early trading
before moderating, trading down by less than 1 percent, to between $92 and $93 a
barrel.
·
West
Texas Intermediate crude, the U.S. benchmark, followed a similar pattern, trading
down slightly, to just under $90 a barrel.
·
Investors
and analysts are focused on the continued disruption to shipping in the Strait of
Hormuz, the narrow waterway between Iran and Oman that is a vital trading route
for oil and natural gas that normally carries as much as one-fifth of the world’s
oil supply.
Stocks are mixed.
·
Futures
on the S&P 500 pointed to a gain when stocks resume trading in the United States
on Thursday.
·
Stocks
in Asia, where countries import vast quantities of oil and gas, were little changed
at the end of the trading day, with shares in Taiwan posting a small decline while
stocks in Japan and South Korea recorded modest gains.
·
In Europe,
stocks rose. The Stoxx 600, a broad index that tracks the region’s largest companies,
gained about half a percent in early trading.
Gasoline prices pull back.
·
U.S.
gasoline prices edged lower on Thursday to a U.S. national average of $4.13 a gallon,
according to the AAA motor club. Gas prices have fallen 39 percent since the war
began.
·
Gas
prices don’t move in lock step with crude, usually trailing increases or drops by
a few days.
·
The
average price of diesel dropped to $5.28 on Thursday but is up 40 percent since
the start of the war.
What they are saying: Inflation
is ‘taking on a life of its own.’
·
Diane
Swonk, the chief economist at KPMG US, warned that accelerating inflation related
to the war in Iran has put the Federal Reserve, which is charged with keeping prices
in check, in a difficult spot. “Delaying rate hikes is riskier today than it was
as the economy emerged from the pandemic,” she wrote. “Inflation has lingered longer
and shows signs of taking on a life of its own.”
·
“We
are now five years into the post-pandemic bout of inflation,” she noted. “The Federal
Reserve did not cause all of it, but it is the institution charged with bringing
it down.” Despite the political pressure on Kevin Warsh, who recently took over
as Fed chair, to cut interest rates, Ms. Swonk expects
officials at the central bank to be convinced to raise rates later this year.
·
The
European Central Bank was expected to raise rates on Thursday (11.06.2026), making
it the first major central bank to do so since the start of the Iran war.