Oil Shock Splits Markets, As Economy Teeters Toward Stagflation: This Week On Wall Street

The ongoing Iran war has led to the closure of the Hormuz Strait, impacting approximately 20 million barrels per day of oil supply, marking the worst oil crisis in modern history. In response, the IEA is releasing 400 million barrels from reserves, while the U.S. is drawing down 172 million barrels from the Strategic Petroleum Reserve, now at its lowest level since the 1980s. Oil prices have risen, with WTI crude nearing $95 per barrel, raising concerns about potential stagflation in the U.S. Major oil refiners like Marathon Petroleum and Valero Energy have performed well, while sectors like shipping and automotive, including Ford and General Motors, have seen significant declines in stock value.