Saturday, 2 May 2026

Special Update 02/05/2026 Big Oil Warns Oil Stocks Depleting.

Baltic Dry Index. 2730 +44    Brent Crude 108.17

Spot Gold 4625                           Spot Silver 76.43

U S 2 Year Yield 3.88 unch.

US Federal Debt. 39.190 trillion

US GDP 32.080 trillion

The US Geological Survey (USGS) estimates that the Appalachian region contains 2.3 million metric tons of undiscovered, economically recoverable lithium. This volume is equivalent to 328 years of US lithium imports based on 2025 levels.

US hits jackpot, 2.3 million metric ton of lithium deposit discovered

Big oil is warning bad things happen in the US and global economy this month.

But is anyone in the District of Clowns listening? 

Big Oil Warns Supply Buffer Is Running Out

May 1, 2026 at 11:00 PM GMT+1

The US-Israel war with Iran and the calamity it’s triggered in global energy markets has been sharply felt by nations from Southeast Asia to Europe. In the US, however, the price for consumers flowing from Donald Trump’s decision to attack has been about $1.40 more for a gallon of gas, on average. This week, the warnings that more acute pain may be coming to American shores have been accumulating. On Friday, one more arrived—from Big Oil.

Every day the Strait of Hormuz remains shut, the world is using up commercial stockpiles, strategic reserves and crude that was stored in vessels, Exxon Mobil, Chevron and ConocoPhillips said this week. These supplies are now running short, Chevron Chief Financial Officer Eimear Bonner said in an interview with Bloomberg TV on Friday.

“There’s very little of the buffer left,” she said. “If you look at the unprecedented disruption and the world’s supply of oil and natural gas, the market hasn’t seen the full impact of that yet.”

David E. Rovella

Big Oil Warns Buffer Is Running Out: Evening Briefing Americas - Bloomberg

U.S. oil prices will exceed Iran wartime high to above $125 as conflict drags on, Kalshi traders say

Published Fri, May 1 2026 2:12 PM EDT

Western Texas Intermediate crude futures haven’t hit their highs in 2026 yet, according to traders on Kalshi. 

Users on the prediction markets platform think that there’s a more than 50% chance that prices will reach nearly $127 per barrel this year, far higher than the current closing high of nearly $113 per barrel on April 7

Traders also estimate there’s a 63% chance that prices will cross $120 per barrel. 

While WTI prices remain off their highs from before the U.S. and Iran announced a ceasefire to the war in the Middle East, they’re considerably higher than their lows of $82.59 on April 17.

Prices are above again $100, and Brent crude prices hit a new post-war high this week. However, oil prices retreated on Friday after Iran sent a revised peace proposal to the U.S., though President Donald Trump said he’s not satisfied with the country’s proposals.

Some of the post-ceasefire decline in WTI oil prices has been reversed as there’s no clear path to Iran reopening the Strait of Hormuz nor to the U.S. ending its naval blockade of the passageway. 

While traders think the highs in oil prices haven’t been hit this year, the range they think prices will trade has shrunk. In early April, before the ceasefire, traders thought there was a more than 50% chance prices traded above $150 per barrel. Traders now place just a 26% chance of that happening.

Kalshi traders think U.S. oil prices are set to hit new 2026 highs

Trump said his blockade would cause Iran’s oil industry to ‘explode’ this week. Why that won’t happen

Published Thu, Apr 30 2026 8:16 AM EDT Updated Thu, Apr 30 2026 12:36 PM EDT

Locked in a standoff with Iran that will break only when economic pain is no longer tolerable, President Donald Trump may have to maintain his naval blockade against Iran for weeks — forcing serious economic consequences on the world.

Trump said Wednesday that he will keep the U.S. blockade against Iran in place until it agrees to a nuclear deal. Tehran, meanwhile, refuses to reopen the Strait of Hormuz until the U.S. calls off its Navy.

It’s unclear which side will budge first.

Trump said Sunday that Iran’s oil infrastructure is days away from exploding because crude is bottled up due to the blockade. 

“Something happens where it just explodes,” Trump told Fox News. “They say they have only three days left before that happens. When it explodes, you can never rebuild it the way it was.”  

But Iran has weeks of space left in its tanks to store oil that it can’t export, experts said. This should give Tehran time to ramp down oil fields in an orderly way that avoids permanent damage, they said.

The oil supply shock, meanwhile, grows worse every day Iran keeps the strait closed, putting pressure on the U.S. as the global economic damage mounts.

“The question for me is who has a longer runway — Trump or Iran,” said Fernando Ferreira, the head of Rapidan Energy’s geopolitical risk service.

Iran tankers blocked

Tehran will feel the heat from the U.S. blockade. There has been no confirmed passage of an Iranian tanker through the U.S blockade zone, according to the ship-tracking firm Kpler.

Iran-linked ships have crossed the strait but they did not make it past the blockade, which stretches from the Gulf of Oman to the Arabian Sea, according to Kpler.

Tehran is losing $500 million per day due to the blockade, a White House official told CNBC.

With Iran’s tankers hunted by the U.S. Navy, oil and condensate loadings at its ports have collapsed from 2.1 million barrels per day before the blockade to just 567,000 bpd after, Kpler found.

Iran will have to start filling up its storage tanks because the oil cannot be exported. Eventually, Tehran will have to cut oil production as the storage tanks near capacity.

Storage capacity

That is the point where Tehran would start feeling the squeeze but it could take a long time to force a reaction, according to Rapidan Energy.

“They prepared for a blockade,” Ferreira said. “They thought it through. They saw what happened in Venezuela.”

“They’re prepared to hold out for months,” the analyst said.

Iran has at least 26 days before its storage tanks fill and production cuts become unavoidable, Ferreira said. The estimate assumes 26 million barrels of onshore storage and 21 million barrels of floating storage in 18 empty, sanctioned tankers in the region, he said.

But it’s a conservative estimate, Ferreira cautioned. Iran’s maximum storage capacity suggests it has space for another 39 million barrels, giving it another 22 days beyond the 26, the analyst said.

There are also 31 ships linked to Iran that will head back to the Middle East through late May which could provide another 50 million barrels of storage, Ferreira said. That would allow Iran to hold out as long 76 days, or well over two months, he said.

These estimates assume Iran is constantly filling its storage at a rate of 1.8 million bpd, Ferreira said. In reality, Tehran will likely start ramping down production, which would stretch the storage further, he said. They also assume Iranian oil exports will not circumvent the blockade at all, the analyst said.

“The blockade can be very effective,” Ferreira said. “It’s about the timeline for it to put Iran under excruciating pain.”

It will take weeks or months to put Tehran under that kind of pressure, he said. “That runway might be longer than Trump has in mind for results,” the analyst said.

More

Trump might have to maintain blockade for months before Iran feels pain

In other news.

China May Restart Fuel Exports as Domestic Stockpiles Surge

By Irina Slav - Apr 28, 2026, 3:30 AM CDT

Chinese state refiners could restart fuel exports next month if the government in Beijing approves their applications for the restart, citing ample domestic stocks.

Companies including Sinopec and CNPC have submitted applications for export permits, Bloomberg reported today, citing unnamed sources in the know. The applications are for exports of diesel and gasoline, the Bloomberg sources said.

In early March, China told energy companies to suspend new fuel export contracts and try to cancel already arranged fuel shipments abroad as global fuel markets tightened amid the Middle Eastern war that effectively froze most traffic through one of the world’s biggest oil and fuel chokepoints.

The ban on exports took immediate effect, covering all gasoline, diesel, and jet fuel cargoes that had not cleared customs as of March 11. Since the institution of the ban on exports, domestic supply has swelled, the sources told Bloomberg, with high prices dampening demand. According to local energy consultancy OilChem, gasoline and diesel stocks at state refiners are at their highest since 2025 and 2024, respectively.

China is a top-three fuel exporter in Asia, after South Korea and Singapore; as such, it has been undermining other countries on the continent with refining industries. A suspension of fuel exports could have boosted the refining industries of other countries had it not been prompted by the tightening crude oil supply due to the traffic disruptions in the Strait of Hormuz.

China issues fuel export quotas for both state and independent refiners on a regular basis. State-owned energy companies get the bulk of the quotas. The latest batch was issued in December last year, with 70% going to state refiners such as Sinopec and CNPC. Meanwhile, fuel export margins have been driven considerably higher by the hostilities in the Middle East. Diesel, in particular, is in increasingly tight supply, recently prompting warnings from energy industry executives of potential shortages.

China May Restart Fuel Exports as Domestic Stockpiles Surge | OilPrice.com

China allows state refiners to export some fuels to Asian buyers

The shipments, which would likely head to Vietnam, Laos and other nations, have already been loaded

Published Thu, Apr 30, 2026 · 07:42 PM

[BEIJING] China has given state-owned refiners the green light to export 500,000 tonnes of fuels to a handful of regular customers, signalling the country is effectively easing an earlier ban on shipments.

The one-off quota would allow petrol, diesel and jet-fuel cargoes to leave China next month, according to people with knowledge of the matter, providing relief to Asia’s emerging economies as the war in the Persian Gulf continues to cut off supply. They asked not to be named as the discussions are not public.

The shipments, which would likely head to Vietnam, Laos and other nations, have already been loaded, they added.

With the Iran war stretching into a third month, vital supplies of crude, fuels, food and fertiliser remain stuck on the wrong side of the Strait of Hormuz.

China – the world’s largest oil importer and a consumer of Middle East crude – has been quick to react, implementing fuel export curbs in order to shield local customers. Domestic stockpiles of fuels such as petrol and diesel have since climbed to seasonal highs.

Bloomberg News reported earlier this week that state oil firms had begun applying for government permits to resume fuel exports.

The National Development and Reform Commission, which oversees the allocation, did not respond to requests for comment. BLOOMBERG

China allows state refiners to export some fuels to Asian buyers - The Business Times

Global Inflation/Stagflation/Recession Watch.

Given our Magic Money Tree central banksters and our spendthrift politicians, inflation now needs an entire section of its own.

Global inflation outlook worsens as oil stays above $110

Economists have raised 2026 inflation forecasts for most major economies as oil prices remain above $110 a barrel amid the U.S.-Israeli war with Iran and the closure of the Strait of Hormuz. While growth projections are largely unchanged, central banks are cautious, holding rates steady as they assess the conflict’s impact. Financial markets remain resilient, but analysts warn of risks if energy prices stay elevated.

29 April 2026

A Reuters poll of 500 economists shows inflation forecasts for 44 of the world’s 50 largest economies have been raised for 2026, driven by oil prices above $110 a barrel following Iran’s closure of the Strait of Hormuz. The conflict has reduced hopes for lower energy costs, with Morgan Stanley’s Seth Carpenter warning of a sustained risk premium. While Turkey and Argentina already face double-digit inflation, most upgrades remain modest, and global growth projections hold near 2.9%. Reuters

"The outright closure of the Strait of Hormuz is essentially ahistorical, and so we don't have a great model for this in the past. People need to entertain the idea we just have higher oil prices for the foreseeable future because of the extra risk premium built in."

Reuters Seth Carpenter, global chief economist

Oil prices up 49% since Iran conflict began

Deutsche Bank Research reports Brent crude 1-month contracts have surged 49% since the onset of hostilities with Iran, while 6-month contracts rose 25%, suggesting markets still see the disruption as temporary. U.S. equities have hit record highs, buoyed by its net energy exporter status and tech sector rebound, while South Korea’s KOSPI has posted a 58% YTD gain. In contrast, Eurozone markets have been hit hard by energy exposure and currency weakness, and precious metals have unexpectedly fallen due to high starting prices and rising real yields. Seeking Alpha

Bond demand slumps as firms shift to bank loans

Elevated corporate bond yields and geopolitical tensions are prompting more Indian companies to seek bank loans over market borrowing. India Ratings and Research data show bond issuance dropped to about Rs 9 trillion in FY26 from Rs 9.9 trillion the prior year, with activity slowing sharply in the final quarter as oil price spikes lifted yields. Abundant liquidity has lowered short-term borrowing costs, boosting corporate commercial paper issuance in April, while equity market volatility from high oil prices has further influenced funding choices. Reuters + 1

What’s next for India’s markets?

Indian equities fell as Brent crude topped $110, with banking stocks pressured by the Reserve Bank of India’s final credit-loss guidelines, which may particularly impact state-owned lenders. The Nifty 50 and Sensex reversed early gains, while upstream oil firms like ONGC rose on stronger earnings prospects. Analysts warn higher crude costs could pressure inflation, growth, and corporate earnings, adding to market volatility ahead of derivatives expiry. Reuters

Global inflation outlook worsens as oil stays above $110

Technology Update.

With events happening fast in the development of solar power and graphene, I’ve added this section.

Another weekend and another battery fire to cover. As batteries spread in everyday life, so does the battery fire risk. Approx. 5 minutes.

Hospital Robot Battery Fire: What Happened at Cedars-Sinai

Hospital Robot Battery Fire: What Happened at Cedars-Sinai

Next, the world global debt clock. Nations debts to GDP compared.

World Debt Clocks (usdebtclock.org)

Exponent Calculator

Enter values into any two of the input fields to solve for the third.

Exponent Calculator

This weekend’ s music diversion. More genius from Vivaldi, no tape required. Approx. 8 minutes.

Antonio Lucio VİVALDİ: Recorder Concerto İn F Major RV.312

Antonio Lucio VİVALDİ: Recorder Concerto İn F Major RV.312

Next, when things really go wrong when saving six million dollars.  Approx. 9 minutes. If you think this is bad wait for next week’s real NYC building disaster.

This NYC Skyscraper Has Been Empty for 7 Years. It Can't Be Fixed. It Can't Be Torn Down

This NYC Skyscraper Has Been Empty for 7 Years. It Can't Be Fixed. It Can't Be Torn Down

Finally, jam yesterday, jam today and (probably) jam tomorrow. Approx. 13 minutes. But read the comments.

How Radar Jamming Actually Works (It's Genius)

How Radar Jamming Actually Works (It's Genius)

Next week, Stealth explained, how modern planes hide.

The research indicates that these resources are located within pegmatites, which are large-grained rocks similar to granite.

The findings divide the resource into two main areas, with the southern Appalachians estimated to hold 1.43 million metric tons of lithium oxide, primarily in the Carolinas.

US hits jackpot, 2.3 million metric ton of lithium deposit discovered


Friday, 1 May 2026

Stocks, Another Dress Up Month-End. An EU Stagflating?

Baltic Dry Index. 2686 +16    Brent Crude 111.26

Spot Gold  4613                          Spot Silver 74.51

US 2 Year Yield 3.88 -0.04

US Federal Debt. 39.185 trillion

US GDP 32.077 trillion.

“The world is a dangerous place,” Berenberg economists warned in emailed analysis last week, noting that in addition to the Trump tariffs and China’s subsidized export drive, the fallout from the Iran war is now “battering European economies.”

May day, May day, May day!

To no ones great surprise, professional money managers, goosed by the central bank’s easy money, dressed up yet another stock casino month-end.

But the commodity and bond casinos are telling a very different story.

Plus, Trump’s free ride in his disastrous Gulf war is supposed to end today, though no one expects Trump to follow US law.

An interesting May and summer lie ahead. Sell in May, go away?

Australia and Japan markets climb, looking past Iran war escalation fears

Published Thu, Apr 30 2026 7:53 PM EDT

Markets in Australia and Japan mostly rose Friday, mirroring gains on Wall Street that saw both the S&P 500 and Nasdaq Composite reach new highs.

This comes as investors took in strong earnings from Apple and Caterpillar, looking past weaker-than-expected economic data and threats of escalation in Iran by U.S. President Donald Trump.

Brent crude prices briefly surged to $126 a barrel after Axios reported that the U.S. military would brief Trump on potential action against Iran.

However, Brent’s June contract, which expired on Thursday, later settled at $114.01 a barrel, while U.S West Texas Intermediate was 0.61% up at $105.71, as of 7:46 p.m. ET. Brent futures for July delivery closed at $110.4.

On Thursday, the U.S. Commerce Department reported that gross domestic product rose at a 2% annualized pace in the first quarter. While that was an increase from 0.5% in the fourth quarter of 2025, it was below the 2.2% consensus estimate by Wall Street economists.

Most major Asian markets are closed due to the May Day holiday.

Japan’s Nikkei 225 climbed 0.66%, but the Topix was marginally down, paring earlier losses.

Australia’s S&P/ASX 200 was up 0.91%, on pace to snap an eight-session losing streak.

Overnight in the U.S., the S&P 500 rose 1.02% to close at a record of 7,209.01, its first close above the 7,200 threshold. The tech-heavy Nasdaq jumped 0.89%, hitting new intraday and closing records as well.

The blue-chip Dow Jones Industrial Average added 1.62%.

U.S. futures for all three major indexes were marginally up after the session, with S&P 500 futures advancing 0.16%, while Nasdaq 100 futures were little changed. Futures tied to the Dow Jones Industrial Average added 79 points, or about 0.2%.

Australia and Japan markets climb, looking past Iran war escalation fears

Oil rises as White House says Iran ceasefire halts 60-day war deadline

Published Thu, Apr 30 2026 10:35 PM EDT

Oil prices climbed Friday, a day after a volatile session that saw the Brent crude contract for June hit a four-year high before retreating.

The June contract, which expired on Thursday, climbed to $126.41 a barrel before settling at $114.01.

On Friday, the July Brent futures contract rose 1.11% to $111.63 as of 10:15 p.m. ET, while U.S. West Texas Intermediate futures for June gained 0.45% to $105.54.

The moves come as U.S. President Donald Trump faces a 60-day deadline under the War Powers Resolution related to military action in the Iran war.

Under the 1973 law, a president must withdraw troops within 60 days of notifying Congress of their deployment, unless lawmakers authorize the military action. Congress has not done so.

The Trump administration argued on Friday that a ceasefire reached three weeks ago had “terminated” hostilities between the two sides, according to MSNow. This would allow the White House to avoid seeking Congressional approval for the war.

An administration official said that the absence of direct fire between U.S. forces and Iran since a ceasefire was first agreed to on April 7 means the 60-day clock no longer applies.

“For War Powers Resolution purposes, the hostilities that began on Saturday, February ​28, have terminated,” an administration official told MSNow.

The argument was first raised by Defense Secretary Pete Hegseth during his hearing before the House Armed Services Committee earlier Thursday, where he said the ceasefire effectively paused the war.

The U.S. and Israel launched strikes on Iran on Feb. 28, and Trump formally notified Congress on March 2, starting the 60-day clock and setting up a May 1 deadline.

Trump could seek a 30-day extension under the law but has not done so, according to lawmakers.

Tensions remain elevated despite a ceasefire. Trump on Wednesday escalated threats against Tehran, vowing to maintain the U.S. blockade on Iran until Tehran agrees to a nuclear deal.

Tehran has refused to reopen the Strait of Hormuz unless the U.S. lifts its blockade of Iranian ports.

Axios also reported that the U.S. Central Command had prepared a plan for a “short and powerful” wave of strikes on Iran in hopes of breaking stalled talks between Washington and Tehran.

While the two sides are currently in a ceasefire, a senior official from Iran’s Revolutionary Guards had reportedly threatened “long and painful strikes” on U.S. positions if Washington renewed attacks on Iran, Reuters reported, citing Iranian media.

Oil rises as White House says Iran ceasefire halts 60-day war deadline

In commodities news. 

UK refineries asked to maximise jet fuel production amid supply fears

Government request follows contingency planning to stop planes being grounded if Iran war supply shocks continue

Wed 29 Apr 2026 14.05 BST

British refineries have been asked to maximise jet fuel supply as part of government contingency planning, amid growing fears the Iran war will force planes to be grounded.

The energy minister Michael Shanks said the government is closely monitoring UK jet fuel stocks and working with airlines, airports, fuel suppliers and other governments, as carriers face rocketing fuel costs as a result of the conflict.

Normal flows of fossil fuels from the Gulf have effectively been at a standstill since the war broke out, after the de facto closure of the important shipping channel, the strait of Hormuz, through which a fifth of the world’s oil and gas flows.

“UK airlines typically buy fuel months in advance, and aviation fuel suppliers hold bunkered stocks. The UK imports jet fuel supplies from a range of countries not reliant on the strait, including the United States,” wrote Shanks in a ministerial statement.

“Airlines UK have stated that ‘UK airlines continue to operate normally and are not experiencing issues with jet fuel supply.’ The government continues to work with partners to monitor and mitigate potential disruptions,” Shanks added.

There are now only four remaining refineries in the UK, after closures at the Grangemouth and Lindsey refineries in 2025.

The remaining UK refineries are: Fawley in Hampshire owned by ExxonMobil; Humber in Lincolnshire owned by Phillips 66; Valero’s Pembroke refinery in Wales; and Essar’s Stanlow site in Cheshire.

These sites produce a range of refined products including petrol, diesel, jet fuel and fuel oil to meet domestic demand and for export. The number of UK refineries has fallen from a peak of 18 in the 1970s, as has the UK’s output of petrol and diesel.

It came as global jet fuel shipments fell to the lowest recorded level last week. Just under 2.3m tonnes of jet fuel and kerosene were transported on ships in the seven days to 26 April, according to initial analysis by the data company Kpler, which first began tracking shipments in 2017. The figure represents less than half the average weekly volume shipped before the war.

More

UK refineries asked to maximise jet fuel production amid supply fears | Airline industry | The Guardian

European aluminum billet premium doubles after Iran war disrupts supply, squeezes consumers

 April 28, 2026 | 7:49 am

The premium in Europe for aluminum billet, a semi-finished product, has doubled since the Iran war started due to shortages stemming from two months of disrupted Middle East supply, squeezing consumers in construction and transport.

Exports from the Gulf region, a key supplier of primary aluminum, billet and other alloys to Europe, have been curbed after the conflict largely suspended the bulk of shipping through the Strait of Hormuz.

Production of the metal has also been hit in the Middle East, which accounts for 9% of global supply with its 7 million metric tons of annual capacity.

“For now, the most acute situation is with the aluminum billet,” a source in metals logistics told Reuters, referring to the situation in Europe. Aluminum billet is a solid block of high-purity aluminum often used for high-performance parts.

Supply conditions are set to tighten further in the coming weeks as stocks held by Gulf producers in Europe are gradually depleted, the source added.

In Rotterdam, the premium for aluminum extrusion billet over the benchmark price, according to Fastmarkets, has more than doubled to $1,100 a metric ton by Friday from the pre-war level of $530.

Having hit four-year highs at $3,672 a metric ton on April 16, benchmark aluminum prices on the London Metal Exchange are up 12% since the US and Israel launched strikes on Iran on February 28.

The physical premium European buyers pay above the LME price for primary aluminum, to cover freight, taxes and handling costs, is up 63% since the war started – at $585 a ton. For May and June, the premium is $625 as of Monday.

Adding to the strain, Emirates Global Aluminium (EGA) has declared force majeure on some aluminum billet contracts with European customers, according to two sources, after one of its smelters in the UAE was hit by an Iranian attack in late March.

More

European aluminum billet premium doubles after Iran war disrupts supply, squeezes consumers - MINING.COM

BHP adopts yuan pricing as China lifts ore ban

29 April 2026

Ban finally lifted: China’s state iron ore buyer ended its ban on certain BHP cargoes, clearing 8.69M tons of stockpiled ore for sale.

Yuan pricing debut: BHP will use China’s COREX index in contracts, replacing the Platts benchmark for some shipments and linking over half the formula to yuan trades.

Global trade impact: The deal boosts China’s market leverage and adds momentum to de-dollarization trends in commodity pricing.

BHP adopts yuan-based pricing in landmark China deal

BHP has agreed to integrate China’s COREX portside iron ore index into long-term contracts with China Mineral Resources Group, marking the first time Chinese market trading data will be part of the iron ore pricing formula. More than half of the pricing for some cargoes will be yuan-denominated before conversion to dollars, with the long-used Platts benchmark excluded. The agreement concluded a months-long standoff during which Chinese buyers were blocked from certain BHP products.

Why the yuan pricing shift matters for global commodities

Global commodities are predominantly priced in U.S. dollars, reinforcing the currency’s reserve status. By accepting a yuan-linked benchmark, BHP has strengthened Beijing’s hand in challenging Western-controlled pricing systems. The shift comes amid geopolitical tensions and could influence other resource sectors, with some analysts noting it may spur central banks to diversify reserves into assets like gold.

More

BHP adopts yuan pricing as China lifts ore ban

In other news.

Markets are still underpricing Iran war risks, investors warn as oil fluctuates around four-year high

Published Thu, Apr 30 2026 6:18 AM EDT  Updated Thu, Apr 30 2026 7:00 AM EDT

Renewed fears about the trajectory of the U.S.-Iran war sent global benchmark Brent crude futures to a four-year high and rattled equity markets on Thursday — but analysts say investors are still pricing for peace and underestimating potential future risk.

The latest step higher in oil prices came after Axios reported that U.S. Central Command is preparing to present U.S. President Donald Trump with plans for further possible military action against Iran, citing anonymous sources.

The president was also reported to have rejected a peace proposal from Tehran, which would mean an American blockade of the Strait of Hormuz — a critical oil shipping route — will remain in place.

By 6:06 a.m. ET, Brent futures for June delivery fell 1.7% at $116.05 a barrel, climbing down from an earlier surge that put the contracts on track for their highest close since March 2022. U.S. West Texas Intermediate futures for June delivery were down about 0.2% to trade at $106.59, also paring earlier gains.

The fresh volatility on Thursday raised questions about what comes next for the oil market and the global economy.

“This move in the oil price might be the catalyst to see sentiment and longer-term positioning changing,” Neil Birrell, chief investment officer at London-based Premier Miton Investors, told CNBC in an email on Thursday.

He noted that while asset prices and sentiment have fluctuated alongside oil prices throughout the two-month Iran war, “it does feel like they have reflected more the likelihood of a resolution to the conflict.”

Backwardation to bite

Since the start of the Iran war in late February, the oil market has been in a state of backwardation: a phenomenon where futures with near-term deliveries are marketed at a premium over longer-dated contracts. Even as near-term futures contracts continue to surge, backwardation remains the status quo — signaling that money markets are pricing in a looming resolution to the war and a stabilization of energy prices.

Optimistic sentiment has also been pervasive across other asset classes, with traders largely shrugging off the sell-off and volatility seen in the immediate aftermath of the war breaking out. However, the four-year high in oil markets, and fresh concerns about Trump’s next move, bled into equity and bond markets once again on Thursday.

“The macro impact and the potential damage to corporate profits will come back into stark focus,” Birrell said of Thursday’s oil price spike. “However, economies and equities, in particular, have proven to be remarkably resilient — the question is, can that continue if the oil price stays at this level or higher?”

In the near term, front-month futures could go a lot higher, warned Patrick Armstrong chief investment officer at Plurimi Group — who also cautioned that investors may not be fully pricing the longer-term impact of the war.

“Where the curve is just crazy to me is the sharp backwardation,” he said. “It’s being priced as if the Strait is going to open imminently, and then everything is going to be okay. There’s been millions of barrels every day that haven’t gotten through, and that’s led to massive inventory drawdowns on oil — but on refined product, particularly jet fuel, diesel, even petroleum, all of these things are getting close to what you’re going to call crisis levels, where you’re going to have to really pay up to get them, and refineries are going to have incredible profit margins.”

Armstrong told CNBC sellers are “going to be able to charge whatever [they] want for refined goods, because oil prices [will] stay higher for longer.”

“Trump jawboned the oil price down by saying we’ve got a peace deal, and we don’t,” he said. “The Strait is going to be disrupted, we think, for all of May, and there’s very little inventory, so it’s hard to be diversified in equities — energy stocks are diversification, that’s what goes up when everything else goes down, because that gives you this stagflationary hedge, [and] that’s the biggest risk in the world right now.”

Bill Perkins, the founder and managing partner of Skylar Capital — a hedge fund focused on the energy market — told CNBC’s “Squawk Box Asia” on Thursday that the economy is yet to see the true effects of the oil crisis arising from the effective closure of the Strait of Hormuz.

“It takes about 40 days for that crew to get to its final destinations, to the big users. If the well runs dry, it takes a little bit [of time] for you to feel the effects, because there’s still … oil on the water that was able to reach its destination,” he said.

Perkins said the bigger story is what’s happening in diesel and jet fuel supply chains, noting that while strategic petroleum reserves had dampened the crude oil market somewhat, diesel had almost doubled in price.

“In the product markets, it’s a Wild West Show,” he said. “Even if we had peace today, you also have to consider the logistics of getting those ships out.”

More

Oil briefly hits $125, prompts warnings Iran risks underpriced

Global Inflation/Stagflation/Recession Watch.

Given our Magic Money Tree central banksters and our spendthrift politicians.

Bank of England keeps rates on hold at 3.75% as Iran war shakes outlook

Published Thu, Apr 30 2026 7:01 AM EDT

The Bank of England voted to keep its key interest rate on hold at 3.75% on Thursday, as widely expected by economists, as the Iran war continues to pose a dilemma for policymakers.

The central bank was widely expected to stand pat on rates as it waits to see how the energy price crunch caused by the Iran war, and a concurrent reignition of inflationary pressures in the U.K., manifest themselves in the economy.

The bank’s Monetary Policy Committee voted in an 8-1 split to maintain the benchmark rate, known as “Bank Rate”, at 3.75%, with known hawk BOE Chief Economist Huw Pill the only dissenter voting for a 25 basis-point increase. 

----The BOE said Thursday that inflation is “likely to be higher later this year as the effects of higher energy prices pass through” and that it was wary of second-round effects — such as workers demanding higher wages in the face of higher living costs, potentially fueling more inflation — in the economy.

“There is a risk of material second-round effects in price and wage-setting, which policy would need to lean against. But the labour market continues to loosen, and a weakening economy could contain inflationary pressures. Financial conditions have tightened since the conflict began, which will help to reduce inflation over time,” the BOE said.

“Taking all the risks to the economic outlook into account, the Committee judges that it is appropriate to maintain Bank Rate at this meeting.”

The BOE nonetheless included three scenarios reflecting the possible outlook for the U.K. economy depending on the scale and duration of the energy price rises, and the severity of any second-round effects that might materialize.

In the most benign scenario, inflation would rise to 3.5% at the end of this year before falling back. In the most severe, inflation could rise “much more sharply” and peak at 6.2% at the start of 2027 and remain elevated above the bank’s 2% inflation target until 2029.

In that most adverse scenario, the BOE said Bank Rate would rise to around 5.25% in 2027. While this would reduce the expected inflation peak in this scenario, it would “come at the cost of a larger output gap and would raise the risk of a recession.”

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Bank of England hold interest rate at 3.75% as Iran war shakes outlook

RBC BlueBay's Dowding sees recession risk for Europe on Iran war

Europe faces recession if the Strait of Hormuz crisis isn’t resolved within a month, according to Mark Dowding, chief investment officer for fixed income of RBC Bluebay Asset Management.

Published Apr 27, 2026

Stagflation risks stacking up as Iran war enters third month

LONDON, April 30 (Reuters) - Financial markets are finding it harder to look past the rising economic costs of the Iran war as the continued closure of the Strait of Hormuz prolongs the world's biggest-ever disruption to energy supplies.

Two months into the conflict, the global economy faces a toxic mix of slowing growth and high inflation - stagflation.

Even as tech stocks lift world shares, analysts warn that the longer Hormuz remains shut, the greater the recession risk for energy-importing regions.

"The probability of a recession in Europe, the UK, and parts of Asia, is higher than is priced into equity markets," said RBC BlueBay's head of market strategy Mike Bell.

Here is how the risks are shaping up across markets:

OIL WATCH

Oil remains the key barometer.

Brent crude is trading at around $112 a barrel, more than 50% above pre-war levels, and continues to rise as the war drags on. High energy prices threaten growth by squeezing consumers and companies while fuelling inflation.

Citi says it's considering an adverse scenario in which Brent climbs to $120 through year-end, cutting global growth to between 1.5% and 2% and lifting headline inflation to nearly 5%.

Gas prices in Europe and Asia have also risen. Farmers face a second surge in fertiliser prices in four years, while countries including Sweden have warned of potential jet fuel shortages.

FINANCIAL CONDITIONS

Despite sharply higher borrowing costs, the shock has yet to show up clearly in overall financial conditions.

Market-based measures - which track how asset prices affect funding availability and future growth - tightened to their most restrictive since last spring in the U.S. in March, but have since stabilised, helped by April's equity rally, according to a closely watched Goldman Sachs index.

Conditions have tightened modestly in the euro zone and Japan, driven by rising borrowing costs. Britain stands out, with a much sharper tightening that points to a heavier growth hit.

U.S. FACES MORE OF AN INFLATION PROBLEM

The impact varies by exposure to energy flows through Hormuz. In the U.S., gas prices are now below pre-war levels.

Jefferies chief European economist Mohit Kumar said both the scale and nature of the stagflation shock differ across regions.

"Inflation will still be higher in the U.S. but that's an oil price impact, the impact on growth is much less in the U.S. than Europe."

U.S. business activity picked up in April, though output prices jumped. Consumer inflation expectations for the year ahead jumped to 4.7% this month from 3.8% in March, while market-based gauges have also moved higher.

JPMorgan CEO Jamie Dimon said this week the worst-case scenario of stagflation remained.

EUROPE IN A TIGHT SPOT

Europe's reliance on energy imports leaves it especially vulnerable, with data already pointing to a stagflationary hit.

Data on Thursday is expected to show euro zone inflation nearing 3%. Contracting business activity, tighter bank lending criteria and surging inflation expectations signal mounting pressure.

Germany's IMK institute sees a 34% chance the bloc's largest economy slips into recession in the second quarter, up from 12% in March.

ING's head of global macro Carsten Brzeski said another month of Hormuz disruption would likely trigger at least a technical euro zone recession.

UK business activity has held up better so far, but risks are rising. The IMF hit Britain with the biggest growth downgrade among rich economies.

Reflecting inflation worries, borrowing costs in Europe have risen faster than elsewhere as traders bet on higher UK and euro zone rates. Britain's two-year yields are up 90 basis points since the war began.

Equity markets, perhaps more focused on growth, are down 4% in the euro zone and 5% in Britain, while U.S. shares have risen.

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Stagflation risks stacking up as Iran war enters third month

Technology Update.

With events happening fast in the development of solar power and graphene, among other things, I’ve added this section Updates as they get reported.

Approval clears next step for tidal energy at Morlais

Wednesday, 29 April 2026 14:00

A regulatory decision has been granted, marking another important milestone for (Ynys Môn) Anglesey tidal energy scheme, Morlais.

Natural Resources Wales has approved an application by Menter Môn Morlais Ltd to vary its existing marine licence, allowing different types of tidal technology to be deployed within the Morlais zone.

The variation relates specifically to Tidal Technologies Ltd devices and supports the continued development of Morlais as a shared site for multiple tidal energy technologies, operating within a single licensed area.

Andy Billcliff, CEO of Menter Môn Morlais Ltd, said: “This is a positive decision for us and allows the Morlais scheme to continue moving forward, and to get tidal energy devices in the sea. It reflects the steady progress we are making at the site and supports the wider development of the tidal stream energy sector here in Wales.”

Tidal Technologies is one of five developers to have already secured capacity to deploy at Morlais through Allocation Rounds of the UK Government’s Contracts for Difference (CfD) scheme. Earlier this year, Tidal Technologies secured 3 MW in Allocation Round 7. The CfDs provide long term revenue support for low carbon electricity generation.

Jim Conybeare-Cross, one of the Founder Directors of Tidal Technologies, added: “The marine licence variation is an exciting and significant step forward for our plans at Morlais. It enables the next phase of work to move ahead, opening the door to further innovation and bringing us closer to generating clean electricity off the coast of Ynys?Môn.”

As one of the world’s largest consented tidal stream energy projects, Morlais will use the power of the tides off the coast of Ynys Môn to generate clean electricity. With a potential generating capacity of 240 MW, the first turbines are scheduled to be deployed in 2027.

Approval clears next step for tidal energy at Morlais | Energy Global

Next, the world global debt clock. Nations debts to GDP compared.

World Debt Clocks (usdebtclock.org) 

Economists fear Europe could be facing a period of “stagflation” — low growth, rising inflation and unemployment — as the war prompts a global energy crunch, price rises and dents business and consumer confidence.