Oil Shock Is Now a Fed Problem 🛢️🔥
WTI crude just jumped toward $107.5, its highest level since early April, as U.S.-Iran tensions keep energy traders on edge. Reports say Trump is still negotiating with Iran by phone, but the market is pricing in no quick fix.
The pressure is bigger than oil.
U.S. SPR withdrawals also surged, with Argus reporting a 7.1M barrel weekly draw and one of the fastest release rates since 2022.
Now Powell has a problem.
Higher oil = higher inflation risk.
Higher inflation risk = fewer rate-cut hopes.
Fewer rate cuts = pressure on stocks and crypto.
So this is not just an energy headline anymore.
It is oil, inflation, Fed policy, and risk assets all moving together.