REUTERS
"US pending home sales beat expectations in March"
By Reuters
April 21, 2026
WASHINGTON, April 21 (Reuters) - Contracts to purchase previously owned U.S. homes increased more than expected in March, but higher mortgage rates and tight inventory remained constraints for the housing market.
The pending home sales index rose 1.5% last month to 73.7, the National Association of Realtors said on Tuesday.
Economists polled by Reuters had forecast contracts, which become sales after a month or two, increasing 0.5%.
Contracts rose in the Northeast and the densely populated South regions.
They fell in the West and Midwest regions.
Pending home sales dropped 1.1% from a year earlier.
Mortgage rates increased through March as the U.S.-Israel war sent oil prices soaring.
Mortgage rates track U.S. Treasury yields, which have risen as the Middle East conflict stoked inflation fears.
The popular 30-year fixed mortgage rate averaged 6.38% at the end of March, data from mortgage finance agency Freddie Mac showed.
It had averaged 5.98% at the end of February, just before the war started, as Freddie Mac and Fannie Mae expanded purchases of mortgage-backed securities.
"Demand sensitivity to mortgage rates is greatest among first-time buyers, particularly younger buyers," said Lawrence Yun, the NAR's chief economist.
"As a result, boosting supply and new-home construction should focus on smaller, more affordable homes."
The NAR reported last week that existing home sales fell to a nine-month low in March.
Housing affordability has become an increasingly potent political issue ahead of the November midterm elections.
A survey last week showed homebuilder sentiment plummeted to a seven-month low in April, noting that "energy costs make up approximately 4% of residential construction material input and service costs."
Reporting by Lucia Mutikani; Editing by Chizu Nomiyama
https://www.reuters.com/business/us-pen ... 026-04-21/
THE DAILY NEWS
Re: THE DAILY NEWS
Q: On large government projects, is a billion dollar cost overrun atypical?
A: A billion-dollar cost overrun is not atypical on large government projects; it is actually common, often described as part of the "Iron Law of Megaprojects" where projects are regularly over budget, over time, and over again.
Research indicates that over 90% of large-scale infrastructure projects go over budget, frequently by 50% to 100% or more, making significant, multi-billion dollar increases expected rather than surprising.
Why Large Overruns Are Typical
High Frequency: A study of 258 large transportation projects showed that 90% ran over budget.
"Megaproject" Complexity: Projects costing over one billion, such as defense systems, high-speed rail, and IT systems, possess high-risk, complex interfaces and long timelines that make them prone to errors.
Optimism Bias & Mismanagement: Projects often suffer from deliberate underestimation of costs to gain approval, coupled with poor governance, mismanagement, and changing plans.
Total Scope: A Federal Government Cost Overruns report highlighted by Federal Government Cost Overruns | Cato Institute and recent analysis has shown over $160 billion in total overruns across several government projects.
According to Explosive Ernst Report Exposes Government Boondoggles ..., the massive scale of these overruns is a regular feature of, rather than an exception to, large-scale federal contracting.
PIRRO IS A RABID MAGA TRUMPER IDIOT WHO DOES NOT HAVE A CLUE AS TO WHAT SHE IS TALKING ABOUT WITH REGARD TO COMMONPLACE COST OVERRUNS WITH LARGE GOVERNMENT PROJECTS SUCH AS TRUMP'S BALLROOM, WHICH HAS ALREADY DOUBLLED IN COST ...Q: Are there cost overruns associated with the White House ballroom project?
A:Yes, the proposed White House ballroom project has experienced significant cost overruns, with estimates doubling from an initial $200 million to roughly $400 million.
Although planned to be funded by private donations, the project has faced construction delays and budget increases, leading to scrutiny regarding the management of this "Mar-a-Lago-style" addition.
Key details regarding the project's costs include:
Budget Increase: Initial estimates of $200 million rose to $300 million and subsequently to $400 million by December 2025.
Funding Source: The project is funded through private donations, not taxpayer funds.
Contractor Issues: The chosen contractor, Clark Construction, has a history of high-profile projects with cost overruns.
Projected Completion: The construction is expected to be finished in summer 2028.
Despite the project being privately funded, concerns have been raised by critics, including USA Today and NBC News, about the escalating costs and the potential long-term maintenance impact on federal taxpayers.
CNBC
"Pirro says DOJ won’t drop Fed probe, will appeal judge’s order blocking Powell subpoenas"
Kevin Breuninger @KevinWilliamB
Published Wed, Apr 22 2026
Key Points
* U.S. Attorney Jeanine Pirro doubled down Wednesday on her controversial investigation of the Federal Reserve, saying she is “going forward.”
* The probe has endangered the confirmation of Kevin Warsh, President Donald Trump’s pick to replace central bank Chairman Jerome Powell.
* PIrro’s efforts hit a major snag last month when a federal judge blocked grand jury subpoenas, writing that a “mountain of evidence” suggested they were issued to pressure the Fed’s board.
U.S. Attorney Jeanine Pirro on Wednesday doubled down on her investigation of the Federal Reserve, even as the controversial probe endangers the confirmation of Kevin Warsh, President Donald Trump’s pick to replace central bank Chairman Jerome Powell.
The criminal investigation centers on alleged cost overruns associated with the ongoing renovations of two historic Fed buildings in Washington.
Powell has accused the DOJ of targeting him for refusing to obey Trump’s demand that the Fed sharply lower interest rates.
The probe has raised concerns about the Fed’s independence from executive-branch interference — so much so that Sen. Thom Tillis, R-N.C., has vowed to block Warsh’s nomination until the DOJ drops it.
At a press conference Wednesday morning, Pirro said she would not back off.
“The cost overruns on that building are well over a billion dollars."
"This investigation continues,” Pirro said.
“I am in the legal lane."
"There are others who were in the political lane."
"I don’t intersect those two lanes,” she said.
PIrro’s efforts hit a major snag last month when a federal judge blocked grand jury subpoenas, writing that a “mountain of evidence” suggested they were issued to pressure the Fed’s board.
The judge, James Boasberg, stood by his ruling in early April, starting a countdown clock for Pirro to file an appeal by May 4.
“I am going forward."
"We are appealing the decision of Judge Boasberg,” Pirro said Wednesday.
Data also provided by Reuters
https://www.cnbc.com/2026/04/22/fed-pow ... ppeal.html
Re: THE DAILY NEWS
CNBC
"Trump’s Fed pick Kevin Warsh signals approach to rates — what a leadership change means for consumers"
Jessica Dickler @jdickler
Published Wed, Apr 22 2026
Key Points
* On Tuesday, the Senate Banking Committee held a hearing to consider President Donald Trump’s nomination of Kevin Warsh to serve as the next chair of the Federal Reserve.
* Warsh said that under his leadership, the central bank would remain independent, despite the president’s push for lower interest rates.
* Still, a new head could change the direction of Fed policy and have far-reaching consequences for almost all consumer borrowing costs and savings rates.
Kevin Warsh made his case for becoming chairman of the Federal Reserve at a hearing before the Senate Banking Committee on Tuesday.
A change in Fed leadership could have far-reaching consequences for consumers’ borrowing costs, experts say.
The Fed chair nominee — and President Donald Trump’s pick to replace current Chair Jerome Powell — spoke to senators about his approach to rate setting as a preferred lever for fighting inflation.
Among the various methods at the central bank’s disposal to promote maximum employment and keep prices stable, “the Fed has an interest rate tool and a balance sheet tool,” Warsh said at the hearing on Tuesday.
“My view is, the interest rate tool gets in the cracks, it’s fairer.”
The Fed sets the interest rate, called the Fed funds rate, that banks charge each other for overnight lending.
That rate then affects many consumer borrowing and savings rates.
How the Fed affects your finances
Generally, short-term rates, such as credit card rates, are closely pegged to the Fed’s benchmark.
Longer-term rates, such as mortgage rates, are more influenced by inflation and other economic factors.
When the Fed raises its benchmark rate, borrowing becomes more expensive for consumers and businesses, which can cool the economy and, in turn, inflation.
Cutting the rate can spur spending and boost the economy, but also fuel higher prices.
Both high interest rates and high prices can hurt consumers, so the Fed’s moves require a delicate balance.
If confirmed, Warsh, a former Fed governor with a Wall Street background, will take over when Powell’s term ends next month.
Trump has repeatedly berated Powell for not bringing the Fed’s benchmark down, and has argued that rates should be sharply lower.
Trump has said that keeping the federal funds rate elevated puts the U.S. at an economic disadvantage to countries with lower rates.
“We should have the lowest interest rate in the world,” Trump said on CNBC’s “Squawk Box” on Tuesday.
In the interview with CNBC, Trump said he would be “disappointed” if a Warsh-led Fed did not deliver on lower rates.
“We are seeing signs that there is a desire to really shift the Fed into surrendering more control to the White House and the Treasury Department,” said Rohit Chopra, former director of the Consumer Financial Protection Bureau.
Chopra is also an ally of Sen. Elizabeth Warren, D-Mass., who grilled Warsh on his independence from Trump at the hearing Tuesday.
Trump’s influence
During the hearing, Warren and other lawmakers questioned whether Warsh would be able to withstand pressure from Trump to lower interest rates.
Warsh said the central bank must remain largely independent of political influence.
“Monetary policy independence is essential,” he said in his prepared remarks.
“Monetary policymakers must act in the nation’s interest, their decisions the product of analytic rigor, meaningful deliberation, and unclouded decision-making.”
Independent of any concerns about Warsh’s views, the nomination may take a while to get out of committee.
For now, Sen. Thom Tillis, R-N.C., has vowed to block the nomination while an investigation is ongoing into Powell’s renovations at Fed headquarters.
Up next: The April Fed meeting
The central bank has indicated that its goal of stabilizing prices and maximizing employment is the reason policymakers don’t want to ease up too soon and lower rates.
The Iran war and Trump’s tariff agenda have also complicated the economic picture.
“There’s no question that higher prices of oil are going to filter their way through the economy,” Chopra said.
Ahead of next week’s two-day meeting of its Federal Open Market Committee, the Fed is widely expected to keep its benchmark interest rate unchanged.
“The Fed is not going to change interest rates next week, and they may not change interest rates for the rest of the year,” said certified financial planner Stephen Kates, a financial analyst at Bankrate.
Even under new leadership, “the people on the committee are not suddenly going to completely change their tune,” Kates said.
“There are serious concerns among the members about inflation.”
https://www.cnbc.com/2026/04/22/fed-cha ... warsh.html
"Trump’s Fed pick Kevin Warsh signals approach to rates — what a leadership change means for consumers"
Jessica Dickler @jdickler
Published Wed, Apr 22 2026
Key Points
* On Tuesday, the Senate Banking Committee held a hearing to consider President Donald Trump’s nomination of Kevin Warsh to serve as the next chair of the Federal Reserve.
* Warsh said that under his leadership, the central bank would remain independent, despite the president’s push for lower interest rates.
* Still, a new head could change the direction of Fed policy and have far-reaching consequences for almost all consumer borrowing costs and savings rates.
Kevin Warsh made his case for becoming chairman of the Federal Reserve at a hearing before the Senate Banking Committee on Tuesday.
A change in Fed leadership could have far-reaching consequences for consumers’ borrowing costs, experts say.
The Fed chair nominee — and President Donald Trump’s pick to replace current Chair Jerome Powell — spoke to senators about his approach to rate setting as a preferred lever for fighting inflation.
Among the various methods at the central bank’s disposal to promote maximum employment and keep prices stable, “the Fed has an interest rate tool and a balance sheet tool,” Warsh said at the hearing on Tuesday.
“My view is, the interest rate tool gets in the cracks, it’s fairer.”
The Fed sets the interest rate, called the Fed funds rate, that banks charge each other for overnight lending.
That rate then affects many consumer borrowing and savings rates.
How the Fed affects your finances
Generally, short-term rates, such as credit card rates, are closely pegged to the Fed’s benchmark.
Longer-term rates, such as mortgage rates, are more influenced by inflation and other economic factors.
When the Fed raises its benchmark rate, borrowing becomes more expensive for consumers and businesses, which can cool the economy and, in turn, inflation.
Cutting the rate can spur spending and boost the economy, but also fuel higher prices.
Both high interest rates and high prices can hurt consumers, so the Fed’s moves require a delicate balance.
If confirmed, Warsh, a former Fed governor with a Wall Street background, will take over when Powell’s term ends next month.
Trump has repeatedly berated Powell for not bringing the Fed’s benchmark down, and has argued that rates should be sharply lower.
Trump has said that keeping the federal funds rate elevated puts the U.S. at an economic disadvantage to countries with lower rates.
“We should have the lowest interest rate in the world,” Trump said on CNBC’s “Squawk Box” on Tuesday.
In the interview with CNBC, Trump said he would be “disappointed” if a Warsh-led Fed did not deliver on lower rates.
“We are seeing signs that there is a desire to really shift the Fed into surrendering more control to the White House and the Treasury Department,” said Rohit Chopra, former director of the Consumer Financial Protection Bureau.
Chopra is also an ally of Sen. Elizabeth Warren, D-Mass., who grilled Warsh on his independence from Trump at the hearing Tuesday.
Trump’s influence
During the hearing, Warren and other lawmakers questioned whether Warsh would be able to withstand pressure from Trump to lower interest rates.
Warsh said the central bank must remain largely independent of political influence.
“Monetary policy independence is essential,” he said in his prepared remarks.
“Monetary policymakers must act in the nation’s interest, their decisions the product of analytic rigor, meaningful deliberation, and unclouded decision-making.”
Independent of any concerns about Warsh’s views, the nomination may take a while to get out of committee.
For now, Sen. Thom Tillis, R-N.C., has vowed to block the nomination while an investigation is ongoing into Powell’s renovations at Fed headquarters.
Up next: The April Fed meeting
The central bank has indicated that its goal of stabilizing prices and maximizing employment is the reason policymakers don’t want to ease up too soon and lower rates.
The Iran war and Trump’s tariff agenda have also complicated the economic picture.
“There’s no question that higher prices of oil are going to filter their way through the economy,” Chopra said.
Ahead of next week’s two-day meeting of its Federal Open Market Committee, the Fed is widely expected to keep its benchmark interest rate unchanged.
“The Fed is not going to change interest rates next week, and they may not change interest rates for the rest of the year,” said certified financial planner Stephen Kates, a financial analyst at Bankrate.
Even under new leadership, “the people on the committee are not suddenly going to completely change their tune,” Kates said.
“There are serious concerns among the members about inflation.”
https://www.cnbc.com/2026/04/22/fed-cha ... warsh.html
Re: THE DAILY NEWS
CNBC
"Treasury yields tick higher as investors digest U.S.-Iran ceasefire extension"
Sean Conlon @SeanAustin96 Joseph Wilkins
Published Wed, Apr 22 2026
U.S. Treasury yields moved higher on Wednesday after President Donald Trump announced an indefinite extension to the ceasefire with Iran.
The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — was up more than 1 basis point at 4.305%.
The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, increased more than 2 basis points to 3.80%.
The longer-dated 30-year Treasury bond yield gained more than 1 basis point to 4.909%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
Trump on Tuesday extended the two-week U.S. ceasefire with Iran, saying the extension was warranted due to Tehran’s government being “seriously fractured.”
He said the ceasefire, which he earlier had said would end on Wednesday, would continue “until such time as” Iran’s leaders and representatives submit a “unified proposal” to end the war with the U.S. and Israel.
The President’s announcement came after reports that an expected trip by Vice President JD Vance to Pakistan for a second round of peace talks with Iranian officials had been put on hold.
Elsewhere, investors are digesting details from Federal Reserve chair nominee Kevin Warsh’s confirmation hearing, which wrapped up on Tuesday.
Trump’s nominee fielded questions on issues ranging from his views on monetary policy to his sprawling and complex personal finances to his ties to the Trump White House.
He would become the wealthiest ever Fed chair if confirmed.
— CNBC’s Holly Ellyatt, Kevin Breuninger and Jeff Cox also contributed to this report.
https://www.cnbc.com/2026/04/22/treasur ... nsion.html
"Treasury yields tick higher as investors digest U.S.-Iran ceasefire extension"
Sean Conlon @SeanAustin96 Joseph Wilkins
Published Wed, Apr 22 2026
U.S. Treasury yields moved higher on Wednesday after President Donald Trump announced an indefinite extension to the ceasefire with Iran.
The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — was up more than 1 basis point at 4.305%.
The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, increased more than 2 basis points to 3.80%.
The longer-dated 30-year Treasury bond yield gained more than 1 basis point to 4.909%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
Trump on Tuesday extended the two-week U.S. ceasefire with Iran, saying the extension was warranted due to Tehran’s government being “seriously fractured.”
He said the ceasefire, which he earlier had said would end on Wednesday, would continue “until such time as” Iran’s leaders and representatives submit a “unified proposal” to end the war with the U.S. and Israel.
The President’s announcement came after reports that an expected trip by Vice President JD Vance to Pakistan for a second round of peace talks with Iranian officials had been put on hold.
Elsewhere, investors are digesting details from Federal Reserve chair nominee Kevin Warsh’s confirmation hearing, which wrapped up on Tuesday.
Trump’s nominee fielded questions on issues ranging from his views on monetary policy to his sprawling and complex personal finances to his ties to the Trump White House.
He would become the wealthiest ever Fed chair if confirmed.
— CNBC’s Holly Ellyatt, Kevin Breuninger and Jeff Cox also contributed to this report.
https://www.cnbc.com/2026/04/22/treasur ... nsion.html
Re: THE DAILY NEWS
RIGZONE
"Crude Rises On Iran-US Standoff"
by Bloomberg | M. Gindis, G. Smith, C. Gorrivan
Wednesday, April 22, 2026
Oil rose as peace negotiations between the US and Iran stalled, with both sides using blockades of the vital Strait of Hormuz to try and gain leverage in a seven-week war that has upended global energy markets.
Brent futures settled above $101 a barrel in New York, the highest in two weeks, amid conflicting reports about plans to reschedule peace talks which have ultimately failed to materialize.
Washington and Tehran remain deadlocked on several key issues, including the Islamic Republic’s nuclear capabilities and Israel’s invasion of Lebanon.
Iranian gunboats fired on a cargo vessel and a container ship in the strategic waterway Wednesday, according to UK Maritime Trade Operations, a naval liaison with the shipping industry.
The attacks are the latest in a series of maritime incidents sparked by the conflict.
Traffic through Hormuz, a vital artery that normally carries about one-fifth of global crude flows, remains at a near-halt.
US President Donald Trump extended a ceasefire with Iran indefinitely, but also maintained a naval blockade on ships going to and from the country’s ports to pile pressure on its government, another bullish signal for oil prices.
Traders also closely followed key US oil inventory data published Wednesday by the Energy Information Administration, which showed declines across all major refined product categories.
The world has been looking to US supplies to offset disruptions from the Middle East.
Heightened export demand pushed total oil and fuel exports to a fresh record, according to the agency.
Volatility has soared to its highest since 2020, when the Covid pandemic sapped demand.
The Washington Post reported that the Pentagon has informed Congress it could take six months to fully clear the waterway of mines deployed by the Iranian military, citing three officials familiar.
"President Trump’s decision to extend the ceasefire indefinitely indicates a belief that economic warfare is more effective than kinetic warfare at this stage in the conflict," said Will Todman, senior fellow in the Middle East Program at the Center for Strategic and International Studies.
"He is hoping that Iranian leaders blink first as the economic toll of the US blockade mounts on their economy."
Trump later on Wednesday said in a post on Truth Social that if the US lifted its blockade to open the Strait of Hormuz, "there can never be a Deal with Iran, unless we blow up the rest of their Country, their leaders included!"
Iran won’t reopen the strait as long as the US Navy continues to intercept ships and will, if necessary, break the blockade by force, Tasnim reported.
Iran has maintained that the blockade is a violation of the ceasefire.
The US on Tuesday said it stopped and boarded a sanctioned oil tanker, after seizing a cargo ship over the weekend, and said it has directed to turn around or return to port a total of 29 vessels.
At least two fully laden Iranian tankers have sailed out of the Persian Gulf and past the US blockade this week.
The exit of the tankers demonstrates the limits of US efforts to curb Tehran’s crude exports.
"Our base assumption is shifting toward a slower normalisation of Persian Gulf flows by mid-May, rather than the earlier expectation of improvement by late April," Societe Generale SA analysts including Ben Hoff wrote in a note.
The change alone is prompting the bank to consider raising its year-end Brent price forecast from $79 a barrel to $85, the analysts said.
"Even so, this revised level may still underestimate both the difficulty and duration of normalisation, particularly given the scale of shut-ins and the constraints around shipping, insurance, port damage, and debris clearance."
The prolonged conflict has fueled backlash over the Trump administration’s handling of rising energy prices.
Treasury Secretary Scott Bessent rejected a claim that Iran has received $14 billion thanks to the Trump administration’s sanction relief on Iranian oil in a bid to tamp down energy prices.
Bessent also said prices "might have been at $150" if not for the move to implement price relief.
Oil Prices
WTI for June delivery increased 3.7% to settle at $92.96 a barrel in New York.
Brent for June settlement rose 3.5% to settle at $101.91 a barrel.
https://www.rigzone.com/news/wire/crude ... 5-article/
"Crude Rises On Iran-US Standoff"
by Bloomberg | M. Gindis, G. Smith, C. Gorrivan
Wednesday, April 22, 2026
Oil rose as peace negotiations between the US and Iran stalled, with both sides using blockades of the vital Strait of Hormuz to try and gain leverage in a seven-week war that has upended global energy markets.
Brent futures settled above $101 a barrel in New York, the highest in two weeks, amid conflicting reports about plans to reschedule peace talks which have ultimately failed to materialize.
Washington and Tehran remain deadlocked on several key issues, including the Islamic Republic’s nuclear capabilities and Israel’s invasion of Lebanon.
Iranian gunboats fired on a cargo vessel and a container ship in the strategic waterway Wednesday, according to UK Maritime Trade Operations, a naval liaison with the shipping industry.
The attacks are the latest in a series of maritime incidents sparked by the conflict.
Traffic through Hormuz, a vital artery that normally carries about one-fifth of global crude flows, remains at a near-halt.
US President Donald Trump extended a ceasefire with Iran indefinitely, but also maintained a naval blockade on ships going to and from the country’s ports to pile pressure on its government, another bullish signal for oil prices.
Traders also closely followed key US oil inventory data published Wednesday by the Energy Information Administration, which showed declines across all major refined product categories.
The world has been looking to US supplies to offset disruptions from the Middle East.
Heightened export demand pushed total oil and fuel exports to a fresh record, according to the agency.
Volatility has soared to its highest since 2020, when the Covid pandemic sapped demand.
The Washington Post reported that the Pentagon has informed Congress it could take six months to fully clear the waterway of mines deployed by the Iranian military, citing three officials familiar.
"President Trump’s decision to extend the ceasefire indefinitely indicates a belief that economic warfare is more effective than kinetic warfare at this stage in the conflict," said Will Todman, senior fellow in the Middle East Program at the Center for Strategic and International Studies.
"He is hoping that Iranian leaders blink first as the economic toll of the US blockade mounts on their economy."
Trump later on Wednesday said in a post on Truth Social that if the US lifted its blockade to open the Strait of Hormuz, "there can never be a Deal with Iran, unless we blow up the rest of their Country, their leaders included!"
Iran won’t reopen the strait as long as the US Navy continues to intercept ships and will, if necessary, break the blockade by force, Tasnim reported.
Iran has maintained that the blockade is a violation of the ceasefire.
The US on Tuesday said it stopped and boarded a sanctioned oil tanker, after seizing a cargo ship over the weekend, and said it has directed to turn around or return to port a total of 29 vessels.
At least two fully laden Iranian tankers have sailed out of the Persian Gulf and past the US blockade this week.
The exit of the tankers demonstrates the limits of US efforts to curb Tehran’s crude exports.
"Our base assumption is shifting toward a slower normalisation of Persian Gulf flows by mid-May, rather than the earlier expectation of improvement by late April," Societe Generale SA analysts including Ben Hoff wrote in a note.
The change alone is prompting the bank to consider raising its year-end Brent price forecast from $79 a barrel to $85, the analysts said.
"Even so, this revised level may still underestimate both the difficulty and duration of normalisation, particularly given the scale of shut-ins and the constraints around shipping, insurance, port damage, and debris clearance."
The prolonged conflict has fueled backlash over the Trump administration’s handling of rising energy prices.
Treasury Secretary Scott Bessent rejected a claim that Iran has received $14 billion thanks to the Trump administration’s sanction relief on Iranian oil in a bid to tamp down energy prices.
Bessent also said prices "might have been at $150" if not for the move to implement price relief.
Oil Prices
WTI for June delivery increased 3.7% to settle at $92.96 a barrel in New York.
Brent for June settlement rose 3.5% to settle at $101.91 a barrel.
https://www.rigzone.com/news/wire/crude ... 5-article/
Re: THE DAILY NEWS
REUTERS
"S&P, Nasdaq close at records on Iran ceasefire extension, earnings"
By Chuck Mikolajczak and Niket Nishant
April 22, 2026
Summary
* Trump declares Iran ceasefire extension
* GE Vernova, Boston Scientific rise after results
* Boeing among top boosts to Dow after earnings
* Indexes up: Dow 0.69%, S&P 500 1.05%, Nasdaq 1.64%
NEW YORK, April 22 (Reuters) - U.S. stocks climbed on Wednesday to send the S&P 500 and Nasdaq to closing records, after U.S. President Donald Trump extended the ceasefire with Iran, with a round of solid corporate earnings providing additional support for optimism.
Trump said the indefinite extension of the ceasefire followed a request by Pakistani mediators.
However, the U.S. Navy's blockade of Iranian ports remained in effect, and Iran seized two ships in the Strait of Hormuz.
The opening of the waterway, responsible for about 20% of global oil supply, remains a major unknown for investors and has been one of the sticking points in the negotiations.
Iran's parliament speaker and top negotiator, Mohammad Baqer Qalibaf, said a full ceasefire only made sense if the blockade was lifted.
Stocks have rallied in recent weeks on the belief that a peace deal could be on the horizon, with the Nasdaq snapping a streak of 13 straight daily gains on Monday.
"Everyone's kind of sick of it... clearly, the market is looking for a beneficial outcome or some kind of decent outcome here," said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco.
"Earnings have been good - now, will they continue to be good if we continue to be at war - it's going to lose a little bit of its oomph."
"That said, in my world, there's still tremendous value, there's a lot of really cheap stuff out there."
The Dow Jones Industrial Average rose 340.65 points, or 0.69%, to 49,490.03, the S&P 500 gained 73.89 points, or 1.05%, to 7,137.90 and the Nasdaq Composite gained 397.60 points, or 1.64%, to 24,657.57.
First-quarter earnings growth is tracking at about 14%, according to LSEG data.
However, risks of an inflation flare-up remain, with oil prices hovering near the $100-a-barrel mark and potentially moving higher.
The S&P 500 technology index climbed about 2.31% and was the best performing of the 11 major S&P sectors, led by gains in chip stocks such as Micron Technology, which surged 8.48% to close at a record $487.48.
The tech index has risen in 15 of the past 16 sessions.
The Philadelphia SE Semiconductor Index hit an intraday record for an 11th straight session and notched its 16th straight day of gains - its longest streak ever.
Seagate rose 3.57% after Barclays upgraded the data storage firm's rating to "overweight".
EARNINGS LIFT SENTIMENT
A strong start to earnings season has eased concerns about the health of the U.S. consumer despite rising energy prices from the Iran war.
S&P 500 EPS estimates for 2026 and 2027 have risen by 4% since late January, according to data from Goldman Sachs.
GE Vernova surged 13.75% as the best performer on the benchmark S&P index after the power equipment maker raised its annual revenue forecast.
Medical device maker Boston Scientific's shares jumped 8.99% after its first-quarter results.
Shares of planemaker Boeing advanced 5.53% after a smaller-than-expected quarterly loss and was the biggest boost to the Dow.
United Airlines, however, stumbled 5.58% after forecasting second-quarter and full-year profits below Wall Street estimates as higher jet fuel prices squeeze margins and cloud its near-term outlook.
After the closing bell, electric automaker Tesla climbed 4.6% after reporting a surprise positive free cash flow in the first quarter.
Shares of Spirit Airlines, which trades over the counter, more than doubled to $1.50 following a Wall Street Journal report that said the Trump administration was close to a deal to rescue the embattled low-cost carrier.
Advancing issues outnumbered decliners by a 1.61-to-1 ratio on the NYSE and by a 1.81-to-1 ratio on the Nasdaq.
The S&P 500 posted 31 new 52-week highs and five new lows while the Nasdaq Composite recorded 118 new highs and 57 new lows.
Volume on U.S. exchanges was 16.08 billion shares, compared with the 18.3 billion average for the full session over the last 20 trading days.
Reporting by Chuck Mikolajczak; additional reporting by Niket Nishant and Avinash P in Bengaluru; Editing by Devika Syamnath and Aurora Ellis
https://www.reuters.com/business/us-sto ... 026-04-22/
"S&P, Nasdaq close at records on Iran ceasefire extension, earnings"
By Chuck Mikolajczak and Niket Nishant
April 22, 2026
Summary
* Trump declares Iran ceasefire extension
* GE Vernova, Boston Scientific rise after results
* Boeing among top boosts to Dow after earnings
* Indexes up: Dow 0.69%, S&P 500 1.05%, Nasdaq 1.64%
NEW YORK, April 22 (Reuters) - U.S. stocks climbed on Wednesday to send the S&P 500 and Nasdaq to closing records, after U.S. President Donald Trump extended the ceasefire with Iran, with a round of solid corporate earnings providing additional support for optimism.
Trump said the indefinite extension of the ceasefire followed a request by Pakistani mediators.
However, the U.S. Navy's blockade of Iranian ports remained in effect, and Iran seized two ships in the Strait of Hormuz.
The opening of the waterway, responsible for about 20% of global oil supply, remains a major unknown for investors and has been one of the sticking points in the negotiations.
Iran's parliament speaker and top negotiator, Mohammad Baqer Qalibaf, said a full ceasefire only made sense if the blockade was lifted.
Stocks have rallied in recent weeks on the belief that a peace deal could be on the horizon, with the Nasdaq snapping a streak of 13 straight daily gains on Monday.
"Everyone's kind of sick of it... clearly, the market is looking for a beneficial outcome or some kind of decent outcome here," said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco.
"Earnings have been good - now, will they continue to be good if we continue to be at war - it's going to lose a little bit of its oomph."
"That said, in my world, there's still tremendous value, there's a lot of really cheap stuff out there."
The Dow Jones Industrial Average rose 340.65 points, or 0.69%, to 49,490.03, the S&P 500 gained 73.89 points, or 1.05%, to 7,137.90 and the Nasdaq Composite gained 397.60 points, or 1.64%, to 24,657.57.
First-quarter earnings growth is tracking at about 14%, according to LSEG data.
However, risks of an inflation flare-up remain, with oil prices hovering near the $100-a-barrel mark and potentially moving higher.
The S&P 500 technology index climbed about 2.31% and was the best performing of the 11 major S&P sectors, led by gains in chip stocks such as Micron Technology, which surged 8.48% to close at a record $487.48.
The tech index has risen in 15 of the past 16 sessions.
The Philadelphia SE Semiconductor Index hit an intraday record for an 11th straight session and notched its 16th straight day of gains - its longest streak ever.
Seagate rose 3.57% after Barclays upgraded the data storage firm's rating to "overweight".
EARNINGS LIFT SENTIMENT
A strong start to earnings season has eased concerns about the health of the U.S. consumer despite rising energy prices from the Iran war.
S&P 500 EPS estimates for 2026 and 2027 have risen by 4% since late January, according to data from Goldman Sachs.
GE Vernova surged 13.75% as the best performer on the benchmark S&P index after the power equipment maker raised its annual revenue forecast.
Medical device maker Boston Scientific's shares jumped 8.99% after its first-quarter results.
Shares of planemaker Boeing advanced 5.53% after a smaller-than-expected quarterly loss and was the biggest boost to the Dow.
United Airlines, however, stumbled 5.58% after forecasting second-quarter and full-year profits below Wall Street estimates as higher jet fuel prices squeeze margins and cloud its near-term outlook.
After the closing bell, electric automaker Tesla climbed 4.6% after reporting a surprise positive free cash flow in the first quarter.
Shares of Spirit Airlines, which trades over the counter, more than doubled to $1.50 following a Wall Street Journal report that said the Trump administration was close to a deal to rescue the embattled low-cost carrier.
Advancing issues outnumbered decliners by a 1.61-to-1 ratio on the NYSE and by a 1.81-to-1 ratio on the Nasdaq.
The S&P 500 posted 31 new 52-week highs and five new lows while the Nasdaq Composite recorded 118 new highs and 57 new lows.
Volume on U.S. exchanges was 16.08 billion shares, compared with the 18.3 billion average for the full session over the last 20 trading days.
Reporting by Chuck Mikolajczak; additional reporting by Niket Nishant and Avinash P in Bengaluru; Editing by Devika Syamnath and Aurora Ellis
https://www.reuters.com/business/us-sto ... 026-04-22/
Re: THE DAILY NEWS
Q: In the run-up to the housing market crash, were lenders accepting predictive credit reports?
A: Yes, in the run-up to the 2008 housing market crash, lenders heavily relied on predictive credit reports and automated underwriting systems (such as FICO scores), but these models failed to accurately assess risk because they did not account for the rapid decline in lending standards.
While these models were designed to predict default probability, their predictive power broke down when faced with "no-doc" loans, "stated income" loans, and rapid home price appreciation, allowing high-risk loans to be mislabeled as "prime".
Key Aspects of Lender Behavior Before the Crash:
Over-reliance on Automated Underwriting: By 2007, roughly 40% of all subprime loans were approved using automated underwriting systems, which allowed lenders to approve loans without a thorough manual review of the borrower's actual repayment capacity.
Broken Predictive Models: Evidence shows that standard credit models failed to predict the subprime crisis, with many loans originated in 2006 and 2007 actually exhibiting higher credit scores than those in previous years, yet still resulting in massive defaults.
"No-Doc" and "Stated Income" Loans: Lenders widely accepted "stated income" loans, which meant the borrower's income was not verified.
This bypassed the "predictive" nature of credit reporting, as credit scores were relied on rather than a realistic ability to pay.
Misleading Risk Metrics: Rating agencies often relied on these same models to assign high credit ratings (AAA) to mortgage-backed securities that were actually backed by highly risky subprime loans.
In summary, it was not a lack of predictive data, but rather the disregard for traditional underwriting standards and the failure of models to account for predatory lending practices that fueled the crisis.
AND NOW TRUMP WANTS TO DO IT ALL OVER AGAIN!Q: In the run-up to the housing market crash, were Freddie and Fannie complicit in accepting predictive credit reports?
A: Fannie Mae and Freddie Mac (the GSEs) were not only complicit in accepting lower underwriting standards during the run-up to the 2008 housing market crash, but they also actively reduced these standards — including accepting weaker credit profiles and less documentation — to maintain market share against private competitors and meet government-mandated affordable housing goals.
While they were not the initial leaders of the subprime surge (leaving that to Wall Street-backed private lenders), they did eventually dive into the risky mortgage market, adopting "subprime-like" loans in 2006-2007.
Key facts regarding their complicity include:
Reduced Standards: To meet rising affordable housing goals set by Congress, the GSEs began accepting loans with lower credit scores, smaller or zero down payments, and reduced documentation (Alt-A loans).
Shifting Risk: As the housing bubble peaked (2005–2007), they bought large volumes of private-label securities backed by subprime mortgages and guaranteed loans with high loan-to-value (LTV) ratios.
Delayed Action: While some argued they were "followers" in the subprime market until 2006, their increased risk-taking in 2006 and 2007, just before the crash, significantly contributed to their massive losses.
Subprime-like Exposure: Fannie and Freddie were the largest investors in "subprime-like" or "Alt-A" mortgages, which often featured low documentation and proved to be just as toxic as subprime loans in their portfolios.
Ultimately, their underwriting models were too optimistic and failed to account for a severe national decline in housing prices.
REUTERS
"Fannie, Freddie to accept 'predictive' credit scores, US officials say"
By Pete Schroeder and Douglas Gillison
April 22, 2026
WASHINGTON, April 22 (Reuters) - Housing finance giants Fannie Mae and Freddie Mac are now accepting additional credit scores that take into account rent and utility payments, a U.S. government official overseeing the agencies announced on Wednesday.
The move is aimed at boosting access to affordable mortgages, a goal of President Donald Trump's administration.
Federal Housing Finance Agency Director William Pulte said the pair, which guarantee most U.S. mortgages, will now accept mortgages assessed using the VantageScore 4.0 model, which uses advanced data and analytics to generate scores.
He said they are also working to implement a similar modified score system from FICO.
Wednesday's announcement is that Fannie and Freddie are now incorporating the scores into their guarantee process.
FHFA approved those models in 2022.
Similarly, Housing and Urban Development Secretary Scott Turner announced his department would consider those scores for mortgages underwritten by the Federal Housing Administration.
The officials said the expanded use of other credit score models should boost competition and potentially lower mortgage costs, allowing opportunities for potential homebuyers who otherwise would have struggled to gain an affordable mortgage.
"We are modernizing credit scoring with more predictive models, helping millions of Americans who responsibly pay rent qualify for mortgages."
"That’s fair, it’s commonsense, and it’s finally delivering the benefits of competition to homebuyers nationwide," said Pulte in a statement.
The Trump administration has increased focus on housing affordability in recent months, as part of an effort to address general concern with rising prices ahead of midterm elections in November where Trump's Republican Party will defend slim majorities in both chambers of Congress.
Reporting by Pete Schroeder and Douglas Gillison; Editing by David Gregorio
https://www.reuters.com/sustainability/ ... 026-04-22/
Re: THE DAILY NEWS
REUTERS
"Nvidia has not yet sold its H200 AI chips to China, Lutnick says"
By Alexandra Alper
April 22, 2026
WASHINGTON, April 22 (Reuters) - Nvidia's powerful H200 AI chips have not yet been sold to Chinese companies, Commerce Department Secretary Howard Lutnick said on Wednesday, citing difficulties faced by those firms to get permission from the Chinese government.
The Trump administration in January gave a formal green light to China-bound sales of Nvidia's H200 chips with some conditions, igniting deep concerns among China hawks in Washington who fear Beijing will harness the technology to supercharge its military.
But shipments of the chips have been stymied by disagreements over the terms of the sales both in China and the U.S., sources have said.
"The Chinese central government has not let them, as of yet, buy the chips, because they're trying to keep their investment focused on their own domestic industry," Lutnick said, when asked about H200 sales to China at a Senate hearing.
"We have not sold them chips as of yet," he added.
Nvidia did not immediately respond to a request for comment.
The continued delay of the chip sales would be welcomed by China hardliners in the U.S., who reject Trump administration arguments that such sales discourage Chinese competitors - such as heavily sanctioned Huawei - from redoubling efforts to catch up with U.S. AI chip designers.
But Lutnick, citing the complexity of U.S.-China relations and the balancing act it requires, also appeared to back off a pledge to reimpose in November a rule that would restrict U.S. tech exports to thousands of Chinese companies.
The regulation, known as the affiliates rule, was delayed for a year last November as part of a trade negotiation with China.
"I agree that the affiliates rule is a smart thing for the United States of America to consider, but it is part of the balance of that full trade agreement," Lutnick said.
Lutnick also downplayed his role on China issues more broadly, saying that the U.S.'s "very complex" trade relationship with China was led by President Donald Trump as well as a team that includes Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer.
"I focus on the rest of the world," he said.
Reporting by Alexandra Alper; Editing by Chris Sanders and Andrea Ricci
https://www.reuters.com/world/asia-paci ... 026-04-22/
"Nvidia has not yet sold its H200 AI chips to China, Lutnick says"
By Alexandra Alper
April 22, 2026
WASHINGTON, April 22 (Reuters) - Nvidia's powerful H200 AI chips have not yet been sold to Chinese companies, Commerce Department Secretary Howard Lutnick said on Wednesday, citing difficulties faced by those firms to get permission from the Chinese government.
The Trump administration in January gave a formal green light to China-bound sales of Nvidia's H200 chips with some conditions, igniting deep concerns among China hawks in Washington who fear Beijing will harness the technology to supercharge its military.
But shipments of the chips have been stymied by disagreements over the terms of the sales both in China and the U.S., sources have said.
"The Chinese central government has not let them, as of yet, buy the chips, because they're trying to keep their investment focused on their own domestic industry," Lutnick said, when asked about H200 sales to China at a Senate hearing.
"We have not sold them chips as of yet," he added.
Nvidia did not immediately respond to a request for comment.
The continued delay of the chip sales would be welcomed by China hardliners in the U.S., who reject Trump administration arguments that such sales discourage Chinese competitors - such as heavily sanctioned Huawei - from redoubling efforts to catch up with U.S. AI chip designers.
But Lutnick, citing the complexity of U.S.-China relations and the balancing act it requires, also appeared to back off a pledge to reimpose in November a rule that would restrict U.S. tech exports to thousands of Chinese companies.
The regulation, known as the affiliates rule, was delayed for a year last November as part of a trade negotiation with China.
"I agree that the affiliates rule is a smart thing for the United States of America to consider, but it is part of the balance of that full trade agreement," Lutnick said.
Lutnick also downplayed his role on China issues more broadly, saying that the U.S.'s "very complex" trade relationship with China was led by President Donald Trump as well as a team that includes Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer.
"I focus on the rest of the world," he said.
Reporting by Alexandra Alper; Editing by Chris Sanders and Andrea Ricci
https://www.reuters.com/world/asia-paci ... 026-04-22/
Re: THE DAILY NEWS
CNBC
"Treasury yields move higher as oil prices rise amid U.S.-Iran standoff"
Sean Conlon @SeanAustin96 Sarah Min @_sarahmin Joseph Wilkins
Published Thu, Apr 23 2026
Treasury yields moved higher on Thursday as tensions between the U.S. and Iran with the Strait of Hormuz reignited inflation fears.
The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — rose more than 3 basis points to 4.325%.
The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, was also up more than 3 basis points at 3.832%.
The longer-dated 30-year Treasury bond yield added more than 1 basis point to 4.919%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
On Thursday, U.S. forces seized a sanctioned tanker carrying Iranian oil in the Indian Ocean.
A day earlier, Iran’s navy said that it had seized two container ships in the Strait of Hormuz, casting doubt upon an already fragile ceasefire.
Iran’s Revolutionary Guard Navy said in a statement that it had seized the ships for what it claimed were maritime violations and transferred them to Iranian shores, according to state media.
CNBC could not independently verify the claim.
The announcement came after U.K. maritime authorities said two ships had been attacked in the Strait of Hormuz.
Iranian media reported a third vessel had also been targeted by the country’s military.
The attacks come shortly after President Donald Trump said the U.S. would extend the ceasefire with Iran to allow for the Islamic Republic’s leaders to submit a “unified proposal” to end the war.
Complicating the situation, however, was Iran’s parliament speaker resigning from the negotiating team, according to Israel’s N12 news.
The report, which CNBC has not confirmed, boosted oil prices.
Brent crude futures rose 3.1% to close at $105.07 per barrel, while West Texas Intermediate futures gained 3.11% to settle at $95.85 per barrel.
— CNBC’s Sam Meredith, Spencer Kimball and Jason Gewirtz also contributed to this report.
https://www.cnbc.com/2026/04/23/treasur ... sists.html
"Treasury yields move higher as oil prices rise amid U.S.-Iran standoff"
Sean Conlon @SeanAustin96 Sarah Min @_sarahmin Joseph Wilkins
Published Thu, Apr 23 2026
Treasury yields moved higher on Thursday as tensions between the U.S. and Iran with the Strait of Hormuz reignited inflation fears.
The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — rose more than 3 basis points to 4.325%.
The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, was also up more than 3 basis points at 3.832%.
The longer-dated 30-year Treasury bond yield added more than 1 basis point to 4.919%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
On Thursday, U.S. forces seized a sanctioned tanker carrying Iranian oil in the Indian Ocean.
A day earlier, Iran’s navy said that it had seized two container ships in the Strait of Hormuz, casting doubt upon an already fragile ceasefire.
Iran’s Revolutionary Guard Navy said in a statement that it had seized the ships for what it claimed were maritime violations and transferred them to Iranian shores, according to state media.
CNBC could not independently verify the claim.
The announcement came after U.K. maritime authorities said two ships had been attacked in the Strait of Hormuz.
Iranian media reported a third vessel had also been targeted by the country’s military.
The attacks come shortly after President Donald Trump said the U.S. would extend the ceasefire with Iran to allow for the Islamic Republic’s leaders to submit a “unified proposal” to end the war.
Complicating the situation, however, was Iran’s parliament speaker resigning from the negotiating team, according to Israel’s N12 news.
The report, which CNBC has not confirmed, boosted oil prices.
Brent crude futures rose 3.1% to close at $105.07 per barrel, while West Texas Intermediate futures gained 3.11% to settle at $95.85 per barrel.
— CNBC’s Sam Meredith, Spencer Kimball and Jason Gewirtz also contributed to this report.
https://www.cnbc.com/2026/04/23/treasur ... sists.html
Re: THE DAILY NEWS
RIGZONE
"Crude Jumps as Hormuz Tensions Rise"
by Bloomberg | Mia Gindis, Charles Gorrivan
Thursday, April 23, 2026
Oil jumped amid fresh signs of escalation in the Iran war, dimming prospects for an imminent resumption of flows through the Strait of Hormuz.
West Texas Intermediate futures rose 3.1% to settle near $96 a barrel in New York, after earlier rising by as much as 5.8%.
Brent settled above $105 a barrel.
Prices jumped late in the session after a day of mostly choppy trading amid new concerns that peace talks have stalled, rhetoric is amping up, and military threats are increasing, injecting geopolitical premium into prices.
Iranian media reported that air defense systems were activated in parts of Tehran to counter "hostile targets," without specifying what those targets were.
Investors have been on edge over the prospect of energy infrastructure in the region coming under fire again following comments from Israel on Thursday that it is poised to resume attacks.
Shipowners are facing mounting evidence that it is unsafe to transit the key waterway, despite Washington's assurances to the contrary, with both the US and Iran blocking the strait.
The war has rattled energy markets since it started at the end of February, with the near-closure of Hormuz causing a sharp drop in flows from major oil and gas producers in the Persian Gulf.
Prices rose earlier in the session after Trump said in a social media post that he had ordered the US Navy to "shoot and kill" boats laying mines in the strait, through which about a fifth of global energy typically transits.
"The ceasefire could be unravelling," said Mona Yacoubian, director of the Middle East Program at the Center for Strategic and International Studies.
"Ships are being boarded."
"The Iranians are thumbing their nose at the US, which has expanded the zone of activity well beyond waters in the Middle East."
"The naval activity is concrete escalation."
The extent to which the strait has been mined — and how long it will take to clear any potential mines — remains an open question for those considering transit.
The increased risk for voyages is keeping oil traders on edge as the world is rapidly losing supplies every day that the conflict drags on.
Tensions in the waterway have been simmering for days.
US forces boarded a sanctioned supertanker carrying oil from Iran in the Indian Ocean on Thursday, after intercepting two Iranian oil tankers that tried to evade an American blockade earlier in the week.
On Wednesday, Tehran demonstrated its grip over the vital Hormuz chokepoint, attacking vessels and diverting two of them into its waters.
Tehran noted it will not take part in negotiations while a US naval blockade on its ports is in place, and Iran state TV cited the foreign ministry as saying its armed forces are ready to respond to further threats.
"As long as flows through the Strait remain restricted, the market keeps tightening and oil inventories keep falling, oil prices will remain supported," said Giovanni Staunovo, an analyst at UBS Group AG in Zurich.
Efforts to revive talks between Washington and Tehran remain deadlocked on several other key issues, including the Islamic Republic's nuclear capabilities and Israel's invasion of Lebanon.
Iranian President Masoud Pezeshkian said in a post that while he welcomes talks, the "blockade and threats are main obstacles" to diplomacy.
Oil Prices
WTI for June settled up 3.1% at $95.85 a barrel in New York.
Brent for June settled 3.1% higher at $105.07 a barrel.
https://www.rigzone.com/news/wire/crude ... 6-article/
"Crude Jumps as Hormuz Tensions Rise"
by Bloomberg | Mia Gindis, Charles Gorrivan
Thursday, April 23, 2026
Oil jumped amid fresh signs of escalation in the Iran war, dimming prospects for an imminent resumption of flows through the Strait of Hormuz.
West Texas Intermediate futures rose 3.1% to settle near $96 a barrel in New York, after earlier rising by as much as 5.8%.
Brent settled above $105 a barrel.
Prices jumped late in the session after a day of mostly choppy trading amid new concerns that peace talks have stalled, rhetoric is amping up, and military threats are increasing, injecting geopolitical premium into prices.
Iranian media reported that air defense systems were activated in parts of Tehran to counter "hostile targets," without specifying what those targets were.
Investors have been on edge over the prospect of energy infrastructure in the region coming under fire again following comments from Israel on Thursday that it is poised to resume attacks.
Shipowners are facing mounting evidence that it is unsafe to transit the key waterway, despite Washington's assurances to the contrary, with both the US and Iran blocking the strait.
The war has rattled energy markets since it started at the end of February, with the near-closure of Hormuz causing a sharp drop in flows from major oil and gas producers in the Persian Gulf.
Prices rose earlier in the session after Trump said in a social media post that he had ordered the US Navy to "shoot and kill" boats laying mines in the strait, through which about a fifth of global energy typically transits.
"The ceasefire could be unravelling," said Mona Yacoubian, director of the Middle East Program at the Center for Strategic and International Studies.
"Ships are being boarded."
"The Iranians are thumbing their nose at the US, which has expanded the zone of activity well beyond waters in the Middle East."
"The naval activity is concrete escalation."
The extent to which the strait has been mined — and how long it will take to clear any potential mines — remains an open question for those considering transit.
The increased risk for voyages is keeping oil traders on edge as the world is rapidly losing supplies every day that the conflict drags on.
Tensions in the waterway have been simmering for days.
US forces boarded a sanctioned supertanker carrying oil from Iran in the Indian Ocean on Thursday, after intercepting two Iranian oil tankers that tried to evade an American blockade earlier in the week.
On Wednesday, Tehran demonstrated its grip over the vital Hormuz chokepoint, attacking vessels and diverting two of them into its waters.
Tehran noted it will not take part in negotiations while a US naval blockade on its ports is in place, and Iran state TV cited the foreign ministry as saying its armed forces are ready to respond to further threats.
"As long as flows through the Strait remain restricted, the market keeps tightening and oil inventories keep falling, oil prices will remain supported," said Giovanni Staunovo, an analyst at UBS Group AG in Zurich.
Efforts to revive talks between Washington and Tehran remain deadlocked on several other key issues, including the Islamic Republic's nuclear capabilities and Israel's invasion of Lebanon.
Iranian President Masoud Pezeshkian said in a post that while he welcomes talks, the "blockade and threats are main obstacles" to diplomacy.
Oil Prices
WTI for June settled up 3.1% at $95.85 a barrel in New York.
Brent for June settled 3.1% higher at $105.07 a barrel.
https://www.rigzone.com/news/wire/crude ... 6-article/