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Oil Leaps Past $108 as Hormuz Disruptions and New Strikes Jolt Markets Before Fed

A jump in U.S. producer prices plus a worsening energy squeeze is narrowing the room for central banks to signal early rate cuts.

Overview

  • Brent crude jumped more than 5% to above $108 after reports of Israeli strikes on Iranian energy assets and vows of retaliation, reversing an earlier retreat toward $101–$103.
  • The Strait of Hormuz remains largely shut as Iran hits Gulf infrastructure, and U.S. Central Command said it dropped 5,000‑pound bombs on hardened Iranian missile sites near the waterway.
  • Iraq resumed limited crude exports via Turkey’s Ceyhan port, offering only partial relief as analysts caution regional supply remains tight.
  • The Reserve Bank of Australia lifted rates 25 bps to 4.1% in a 5–4 vote citing fuel‑price risks, while the Federal Reserve is expected to hold with focus on the dot plot and Chair Jerome Powell’s guidance.
  • Equities and crypto wavered, with Asian gains giving way to U.S. and European declines after a hotter‑than‑expected PPI and higher oil, while Bitcoin fell to about $72,300.