Good morning and welcome to Markets Desk.
Saudi Aramco's chief executive is warning that global oil inventories could take as long as two years to rebuild, with the ongoing U.S.-Iran conflict adding fresh pressure to an already strained supply picture. That timeline puts a floor under crude prices and complicates planning for refiners and energy traders alike.
Shifting to fixed income, Treasury Secretary Bessent is walking back his confident "I am the house" declaration from a month ago after bond yields continued climbing despite his assurances. Speaking with Axios, Bessent defended the Treasury's market stewardship, but the retreat signals that the administration's grip on the long end of the curve remains shakier than officials had projected.
And on equities, the headline indices may be holding, but Morgan Stanley is flagging a quieter deterioration underneath the surface. The average U.S. stock has been getting quietly punished, with industrials among the hardest hit. The bank sees selective value emerging in beaten-down names and is advising clients to look past the index-level calm toward specific opportunities building at the single-stock level.
That's the tape. Markets Desk, signing off the floor.
