Market Overview - Energy sector is the only sector performing well today due to rising oil prices following Israel's air strikes against Iran [1] - Crude oil prices are up approximately 7% [1][7] Iran's Energy Sector and Oil Exports - Iran exports about 17 million barrels of oil per day, with over 90% of these exports originating from Car Island [2][10] - Car Island, a small island in the northern Persian Gulf, is the primary export point for Iranian crude oil [2][9][10] - Israel's decision not to target Car Island is noteworthy [8][10] - Iran's oil exports are now almost entirely directed to China [8] Strait of Hormuz - The Strait of Hormuz is a crucial artery for global energy trade, only 21 miles wide at its narrowest point [4] - Approximately 20 million barrels of oil pass through the Strait of Hormuz daily, accounting for about 20% of global oil and product demand [4] - The Strait handles 34% of the global seaborne oil trade [5] - About a third of the oil passing through the Strait is destined for China [5] - Saudi Arabia, the UAE, and Kuwait also export crude oil through the Strait [5] - The Strait is the sole export route for Qatar and the UAE, which together account for about 20% of global LNG supply [6] - Energy firm Kepler suggests that a closure of the Strait could push Brent crude oil prices above $100 per barrel [6] Market Reaction - WTI crude oil initially rallied 14% overnight but is now up a more modest 7% [7] - The market is focusing on the fact that no oil supply has been disrupted [7] - Traders are exhibiting a more measured response, possibly due to past experiences where geopolitical events did not significantly impact oil supply [7]

Market Impact of Geopolitical Tensions - Oil prices are surging following strikes by Israel, with the market closely watching Iran's response [1] - The Strait of Hormuz is a key chokepoint, with Iran potentially disrupting a quarter of the world's oil supply [3] - JPMorgan simulations assign a 7% probability to a worst-case scenario of oil reaching $130 per barrel [6] Potential Disruptions and Risks - A worst-case scenario could see oil prices rise to $120 per barrel due to Strait of Hormuz closure [4] - Lower-level actions by Iran, such as harassing shipping, could increase shipping rates and cause tanker shortages [4] - Traders are buying call options to protect against potential escalation [5] Iranian Oil Supply - Sanctions could be reimposed, potentially removing Iranian barrels from the market [8] - The market needs to prepare for the possibility of Iranian barrels being removed from the market, even without military action [9]

Oil futures spiking, seeing their biggest gain in three years. And as we're monitoring the violence that's breaking out between Iran and Israel, this is prompting concerns around the outlook for supply in the region. Joining us now on the outlook for energy sector here.We've got Fernando Valet who is the hedgei risk management energy analyst. Good to have you here. Taking some time this morning.just walk us through where this immediately kind of initiates some of your attention to flow into especially when ...

The results of the CNBC NRF retail monitor for May just released. Let's get to Steve Leeman. He has more on this.Hi, Steve. Hey, Becky. Consumer spending growth slowed in May.Apparent payback from strong April outlays that were propelled by consumers pulling forward purchases ahead of tariffs. And consumers of course could now face new challenges after developments overnight in the Middle East. Uh the CNBC NRF retail monitor.It's powered by real credit card spending data from Affinity Solutions showed a 0.5 ...

We are watching very closely the reaction to everything we're hearing from the Middle East after that Iranian strike, the strike on Iran from Israel. You can see this morning that the futures have pulled back substantially. Dow futures are off by over 500 points this morning.The Nasdaq indicated down by about 310. The S&P futures off by 70 and this is coming as uh we had been looking at positive issuances from the United from the US stocks. Uh we were looking yesterday at the stocks up across the board once ...