Hormuz tensions push oil higher as investors weigh Fed minutes and supply risks

A fresh spike in Hormuz related tensions has shaken oil routes and forced investors to reassess supply risks significantly. Markets await Fed minutes and UK housing data as traders balance geopolitical uncertainty with AI driven gains and corporate earnings. Morning overview of global and European markets by Ankur Banerjee. After renewed tensions around the Hormuz Strait, investors again turned their attention to supply routes and how developments between the United States and Iran could affect oil prices and the overall picture in global markets. Markets are also assessing whether the fragile ceasefire has held and what prospects for peace in the Middle East could shape the mid-term trend. Key events that could influence markets on Wednesday June housing market report for the United Kingdom Minutes of the U.S. Federal Reserve meeting during U.S. trading hours Oil prices rose about 2% on concerns about restoring supply from the region and the impact of U.S. sanctions on Iran. The Hormuz Strait remains in focus due to a string of conflicts that have developed since late February. Despite the tension, investors expect the worst to be behind us, and Brent crude futures may hold gains within a certain range. Markets are also pausing after the AI-driven rally and preparing for seasonal reports. The yield on the 10-year U.S. Treasury notes rose to around 4.565% amid rising oil prices and inflation-related risks. Focus will remain on the minutes of the June Fed meeting to gauge the regulator’s intentions for future monetary policy. It is expected that the Fed could leave room for one rate hike by the end of 2026, depending on growth and inflation. Attention from researchers and investors is also drawn to the tech sector after SpaceX’s high-profile IPO and concerns about further momentum amid market volatility. South Korea’s SK Hynix launched the sale of U.S.-listed shares totaling about 43 trillion won; trading on the Kospi was down, leading to a brief halt in trading on the exchange due to high volatility. Key events that could influence markets on Wednesday: June UK housing market overview Minutes of the U.S. Federal Reserve meeting during U.S. trading hours Markets have reacted with relief to the latest developments, but focus remains on forthcoming developments in the Middle East, Fed policy signals, and the results of anticipated corporate earnings reports. Day in review: Analysts are tracking changes in U.S. monetary policy, the trajectory of oil prices, and the outlook for global growth based on regional and world market news. Risks to supply and geopolitical tensions remain, but there are also opportunities for a recovery after recent climbs in major indices.