Iran-US tensions escalate in Strait of Hormuz

What happened: Tensions between the US and Iran escalated in the Strait of Hormuz over the weekend, driving a significant jump in oil prices. On Friday, oil prices plummeted after Tehran's statement, but they surged again on Sunday following attacks on commercial ships in the strait. Brent crude futures hit $96.13, and West Texas Intermediate reached $90.15.

Market impact: The energy sector was significantly affected. Oil and gas companies like ExxonMobil and Chevron saw their stock prices rise. Global oil prices surged due to supply chain disruptions, as the Strait of Hormuz is a critical chokepoint for global oil supplies. The jump in oil prices also impacts industries reliant on energy, such as airlines and logistics companies.

What to watch next: The evolution of US-Iran tensions will be crucial. Upcoming catalysts include any further military actions or diplomatic responses from either side, as well as the next OPEC+ meeting on June 4, where oil production policies will be discussed. Additionally, watch for any changes in US sanctions on Iranian oil exports, which could further impact global oil supply and prices.