Good morning, you're listening to Markets Desk.
Trump's announcement that the United States intends to seize Iran's Kharg Island and key oil infrastructure points is rattling energy markets this morning. The president drew comparisons to U.S. actions in Venezuela, signaling this is not posturing but policy. Crude prices are moving sharply, and geopolitical risk premiums are back on the table in a serious way.
That energy shock arrives on the same day the European Central Bank raised its benchmark rate by a quarter point to two point two five percent, becoming the first G Seven central bank to move specifically in response to the Middle East energy crisis. Frankfurt is front-running inflation before it takes hold, and the move puts pressure on the Fed to clarify its own posture heading into summer.
Closer to home, wholesale prices jumped one point one percent in May, well above the Dow Jones consensus forecast of zero point seven percent. The producer price index reading is a leading indicator, and when it surprises to the upside by this margin, it tends to work its way into consumer prices within weeks. Disinflation optimism takes a real hit this morning.
That's the tape. Markets Desk, signing off the floor.
