Oil markets in crisis mode after Hormuz attacks
Brent crude jumped 7% to $95.40 per barrel on Wednesday, the highest level since the Iran conflict escalated. Iran's attack on multiple tankers near the Strait of Hormuz disrupted shipping through the strategic waterway that handles one-fifth of global oil supply. The US Navy deployed additional vessels to restore safe passage, but shipping companies suspended transit through the strait, sending spot prices for Middle Eastern crude even higher. The US formally revoked authorization for Iranian oil export sales.
NY Fed shows inflation expectations rising again
The New York Federal Reserve's latest Survey of Consumer Expectations showed short- and medium-term inflation expectations ticking upward in June, driven largely by energy price concerns. Consumers now expect inflation at 3.4% over the next year, up from 3.1% in May. The data complicates the Fed's path toward interest rate cuts, with markets now pricing in just one quarter-point reduction before year-end instead of the three cuts expected in early 2026.
Amazon announces $25 billion bond sale, EU overhauls carbon market
Amazon plans to raise $25 billion in its largest-ever bond offering, according to sources familiar with the matter, to fund data center expansion and AI infrastructure. Separately, the European Union unveiled a major overhaul of its carbon market, proposing slower CO2 emission reduction targets through 2030 and more free pollution permits for energy-intensive industries to shield European manufacturers from global competition.