Crude futures fell 4% as the US affirmed its diplomatic ceasefire posture and successfully escorted two merchant vessels through the Strait of Hormuz, temporarily unwinding geopolitical risk premiums.
Crude futures spiked 6% as a severe kinetic escalation involving sovereign strikes on a UAE oil port and active US-Iran naval combat shattered the existing maritime containment zone.
Crude breached $120 as the violent convergence of peak summer demand and a 6-million-barrel US inventory draw compounded the physical reality of a months-long maritime blockade.
China’s manufacturing sector extended its expansion for a second consecutive month in April, supported by firmer production and a short-lived boost in external demand as exporters rushed shipments amid rising Middle East tensions.