Middle East Tensions Send Crude Prices Higher

While Brent crude prices retreated slightly from their early morning peak to trade around $78, the market remains on edge. Tanker traffic through the Strait of Hormuz has plummeted, with Kpler data confirming only six vessels transited the waterway on Sunday—the lowest volume recorded in five weeks. Conflicting accounts persist regarding the status of the passage, with Iran claiming a closure while President Donald Trump maintains the strait remains open.

Equities are facing simultaneous pressure. South Korea’s KOSPI index slid nearly 9% on Monday, dropping below the 7,000 threshold and entering bear market territory—now 25% off its June 22 peak. The decline was largely fueled by a record 15% plunge in SK Hynix shares. As global markets prepare for the start of second-quarter earnings and crucial U.S. June inflation data, European jet fuel supplies are also flashing warning signs. Consultancy Energy Aspects reports that Europe faces a deficit of nearly 600,000 barrels per day for the third quarter, leaving the region with less than 30 days of demand coverage.