Reuters Morning Bid Week in Review: Seven days of war
Mar 7, 2026
They cover widening Middle East strikes and shipping chokepoints that are disrupting oil flows. They discuss a sharp surge in oil prices and forecasts that could push Brent much higher. They examine who may gain or lose from shifting supply patterns, including impacts on Russian pricing. They outline bond sell-offs, safe-haven flows, central bank implications and a surprise US payrolls loss.
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Strait Of Hormuz Supply Shock Drives Oil Spike
- Oil prices jumped sharply because roughly a fifth of global oil normally transits the Strait of Hormuz and much of that is currently stuck in the Gulf.
- Brent topped $90 and supply bottlenecks from blocked exports are translating quickly into higher pump prices in the US, per Elena Kassas and Peter Devlin.
Rerouting Limits And High Tanker Risk Amplify Price Upside
- Major Gulf producers can reroute some exports via the Red Sea but much oil remains trapped, causing analysts to warn prices could climb toward $100–$150 a barrel if exports shut down.
- Tanker risk is already high: at least 10 vessels have been hit and freight rates for successful voyages can approach half a million dollars a day, yet many shipowners avoid the danger.
Consider Escorts And Insurance To Keep Tankers Trading
- Governments can consider naval escorts or insurance backstops to keep tankers moving through contested waters, which would require redeploying military assets and designing insurer support.
- Such measures face practical limits: jets and destroyers are tied up and shipowners still view passage as too risky despite potential outsized freight returns.