Good afternoon and welcome to Markets Desk.
Oil is the story of the session, with crude surging past one hundred twenty six dollars a barrel to its highest level in four years after reports emerged that President Trump is being briefed on potential military strike options against Iran. Iran's parliament speaker Mohammad Ghalibaf responded by mocking the administration and suggesting prices could reach one hundred forty dollars, a number that would send shockwaves through every corner of the global economy.
The geopolitical premium now baked into energy markets is feeding directly into inflation expectations, which puts the Federal Reserve in an increasingly uncomfortable position heading into the back half of the year. Bond traders are already repricing rate cut timelines, and equity markets are feeling the pressure, particularly in transport and consumer discretionary sectors where energy costs hit margins hardest.
Away from oil, a quieter but consequential shift is underway in student lending. Trump's federal repayment overhaul, including new borrowing caps set to take effect in July, is opening a lane for private lenders who say they are ready to compete aggressively for borrowers migrating out of the federal system. That is a meaningful structural change in how Americans finance higher education, and the credit implications will be worth watching closely.
That's the tape. Markets Desk, signing off the floor.
