Brent Slips to $105 as Fed Hike Meets Hormuz Supply Shock
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Brent crude fell 2.88% to $105.60 per barrel while WTI dropped 3.33% to $102.30, as traders digested the Federal Reserve's first rate hike since 2023, lifting the benchmark to 3.75%-4.00%.
Despite the pullback, both benchmarks remain firmly above the $100 threshold, a level unseen in years, as the Strait of Hormuz conflict shows no sign of diplomatic resolution and inventories continue to draw down globally.
StanChart analysts now see a structurally higher price floor forming, arguing the combination of monetary tightening and supply-side shocks from the Gulf could keep volatility elevated through year-end.