The U.S. Energy Information Administration has increased its forecast for global oil production following a recent agreement that reopened the Strait of Hormuz. The agency now projects lower prices for crude oil and U.S. gasoline through 2027.
Exxon Mobil has indicated its second-quarter earnings could rise by approximately $5 billion over the previous quarter, driven by a surge in oil prices and improved refining margins. The gains come as global energy markets were impacted by geopolitical conflict in the Middle East.
The U.S. Central Command has announced the completion of strikes on more than 80 targets in Iran, aimed at degrading the country's military capabilities in the Strait of Hormuz. In response, Iran's military has threatened a "crushing response" to what it called an act of aggression.
At least four oil and gas tankers have altered their course to avoid the Strait of Hormuz following recent attacks on vessels in the critical shipping lane. The diversions occurred after a Qatari LNG tanker and a Saudi crude tanker sustained damage, prompting heightened security alerts.
Oil prices jumped and global stock markets faltered on Wednesday after the United States and Iran exchanged military strikes. The renewed hostilities have rattled investors and prompted a selloff in technology shares.
Bank of America strategists maintain a positive medium-term outlook for the British pound, citing improving UK-EU relations, growing AI investment, and a pragmatic Bank of England as key supporting factors.
U.S. Treasury and European bond yields climbed on Thursday following comments from central bankers that tempered expectations for near-term interest rate cuts. Investors are now awaiting the June non-farm payrolls report for further clues on monetary policy.
Analysts at Citi report that the EUR/GBP currency pair has experienced a bearish technical break, falling below the 0.86 level. The bank suggests this move could signal further declines, potentially toward the 0.8450-0.85 range.
The South African rand held steady against the U.S. dollar on Monday as investors look to the upcoming release of Federal Reserve minutes for guidance on interest rates. The currency's movement is being driven by global factors amid a light week for domestic economic data.
