Iran Conflict Escalates Global Energy Prices and Economic Volatility

Key Intelligence

• ■Global oil prices are surging due to the Strait of Hormuz blockade and broader conflict, even as US crude exports reached a record over 6 million barrels/day.
• ■The spike in energy costs is driving inflation globally, pushing California gasoline prices above $6 and causing Asian currencies to hit record lows.
• ■A 'war premium' is extending beyond oil, igniting a broad rally in other commodity markets, including corn.
• ■Internally, Iran faces an internet blackout as its new leader pledges to guard nuclear and missile technology, amidst US efforts to seize Iran-linked oil tankers.
• ■The conflict's economic fallout is seen worldwide, impacting European economies with mixed signals and leading Japanese utilities to withhold earnings guidance due to fuel costs.