Oil Prices Slip and Bond Selloff Abates on Hormuz Reopening Hopes

Key Facts

1Brent crude futures declined amid hopes for a deal to reopen the Strait of Hormuz.

2The bond market selloff abated as energy-driven inflationary pressures eased.

Brent crude futures declined amid hopes for a deal to reopen the Strait of Hormuz. The Wall Street Journal reported that prospects for reopening the strategic waterway have reduced the geopolitical risk premium currently priced into global oil supplies.

The bond market selloff abated as energy-driven inflationary pressures eased. This de-escalation in geopolitical tensions is lowering inflation expectations, which has helped stabilize Treasury yields following a period of intense selling pressure.