Oil Holds Gains as Strait of Hormuz Stays Closed
WTI crude rose 3.5% to $73.90 as the dollar eased and European stocks calmed. Focus turns to US CPI later this week, with 10-year yields near June highs.
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Oil prices held gains Monday as the Strait of Hormuz remained closed and US-Iran tensions persisted. WTI crude rose 3.5% to $73.90. The dollar eased slightly from its recent highs. EUR/USD nudged up from 1.1400 to 1.1445 before settling 0.1% higher at 1.1430. GBP/USD pared early losses from 1.3370 to 1.3410 and was little changed at 1.3390. USD/JPY pulled back from 162.30 to 162.10 amid headlines around Japan's GPIF.
European stocks were calmer. US pre-market trading pointed lower, with S&P 500 futures down 0.3% and Nasdaq futures down 0.9%, though both were off earlier lows. Ten-year Treasury yields flirted with the June highs near 3.58%. Precious metals retreated, with gold down 1.4% to $4,063.
The broader focus this week turns to the US CPI report. The oil price rise adds to inflation concerns ahead of that data. Traders will watch for any shift in Fed rate expectations. The Strait of Hormuz closure threatens global oil supply, keeping prices elevated. That could feed into gasoline costs and consumer inflation. The dollar's slight easing may reflect a pause in the safe-haven bid as markets await the CPI.
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