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Oil Hits Four-Year High as Hormuz Tensions Escalate

Iran-linked shipping curbs are reshaping U.S. security planning, complicating rate policy.

Overview

  • Brent crude rose about 7% to roughly $126 a barrel, its highest level in four years, as supply fears built around the Strait of Hormuz.
  • U.S. officials are weighing prolonged maritime pressure on Iranian ports and possible limited military options, according to media reports cited in the coverage.
  • Analysts say Iran is trying to control transit through the Strait of Hormuz in ways that defy the law of the sea, a chokepoint that carries about 20–21 million barrels of oil a day and most Gulf liquefied natural gas shipments.
  • The Federal Reserve kept rates at 3.5% to 3.75% in a rare split decision, and Jerome Powell said he will remain on the Board during ongoing legal matters as higher energy costs add uncertainty to the inflation outlook.
  • International partners adopted 12 Berlin Principles on Sudan that call for a humanitarian truce, a civilian-led transition, accountability for war crimes, and Sudanese-led reconstruction, though implementation remains in doubt.