Global oil prices climbed in the wake of renewed Iranian attacks and the closure of the Strait of Hormuz. The standstill has also had a significant impact on the liquefied natural gas (LNG) market, with 20% of global LNG passing through the Strait. European natural gas rose 63% last week, and Asian prices traded at $23.40/mmbtu. LNG operations cannot be restarted quickly due to the complex industrial process involved, leading to concerns about potential extended disruptions.

The escalating conflict resulted in a drop in Dow futures by over 500 points. U.S. benchmark WTI and global standard Brent crude traded in the low-to-mid $100s a barrel. G7 officials are discussing potentially tapping strategic oil reserves to counteract the increasing prices. Various sectors of the global markets are responding to the situation. The energy stocks of Chevron, Talos Energy, Northern Oil and Gas, and ConocoPhillips initially traded higher but pulled back as oil prices stabilized. Hims & Hers Health saw a surge of 39% after striking a deal with Danish company Novo Nordisk.

G7 energy ministers are set to discuss the potential release of oil reserves to counteract supply disruptions caused by the Iranian conflict. Ideally, 300-400 million barrels, representing 25-30% of the 1.2 billion barrels in the reserve, could be released.

Artificial Intelligence company Anthropic has filed a lawsuit against the Trump administration following a blacklisting by the Pentagon. The administration declared the company a “supply chain risk”, and the lawsuit argues that this move is “unprecedented and unlawful”.