Crude oil is on the march again, with benchmark US prices back above $100. Stocks, gold, silver, and Treasuries are all higher, too. So, are Bitcoin and the US dollar.
Traders resumed buying oil yesterday after Iran, Israel, and the US failed to reach a deal to end the current conflict or reopen the Strait of Hormuz. In fact, the Houthi regime in Yemen launched its first attacks at Israel over the weekend…while reports emerged that President Trump is considering launching a raid to take Iran’s highly enriched uranium stockpiles.
Brent, WTI Futures (5-Day % Change)
Source: TradingView
Brent futures were recently trading around $107, while US WTI crude futures were hovering around $101. In a slight pattern break, Treasury prices were rising alongside oil. Stocks were up, too. Investors are dipping their toes back into bonds on the assumption higher oil prices will weaken the economy – and therefore lead to less pressure on the Federal Reserve to hike interest rates. Some are buying stocks because they think markets are washed out and attractively valued.
Meanwhile, the foodservice and supply distributor Sysco Corp. (SYY) is bulking up. The company is acquiring privately held Jetro Restaurant Depot for $29.1 billion in cash, stock, and debt. Jetro is active in the “cash and carry” wholesale supply business that serves more than 725,000 smaller restaurants and businesses.
Finally, OpenAI shut down its Sora video-generation tool – surprising some of the corporate partners like Walt Disney Co. (DIS) it had lined up and disappointing amateur directors everywhere. It reportedly consumed vast amounts of computing power, wasn’t profitable, and was proving to be a distraction ahead of an expected Initial Public Offering (IPO). OpenAI is reportedly redirecting resources to its newest “Spud” AI model.
