Energy and Oil Sector
Brent crude rose above $91 a barrel after the U.S.-Iran ceasefire expired and a cargo ship was attacked in the Strait of Hormuz, cutting daily transits down to single digits. The spike in energy prices pushed 30-year U.S. Treasury yields to multi-decade highs, weighing on equity markets like the Nasdaq. Meanwhile, U.S. crude and distillate stocks both contracted, China set new domestic supply targets, and Thiel Macro took a $76 million stake in Vista Energy.
An outbound cargo vessel was struck by an unknown projectile in the Strait of Hormuz, causing engine room damage and a crew casualty. The United Kingdom Maritime Trade Operations reported that the surviving crew members were evacuated with assistance from the Omani Coast Guard. The attack occurred immediately after a 60-day U.S.-Iran negotiating ceasefire expired without a formal follow-on agreement. Commercial traffic through the vital energy chokepoint remains severely depressed, with tracking data from Kpler showing daily transits lingering in the single digits compared to more than 130 vessels daily before the conflict. Washington and Tehran have rejected further talks, prompting analysts at Eurasia Group to push back expectations for a de-escalation timeline to year-end.
Oil prices extended gains for a third consecutive session as a 60-day U.S.-Iran ceasefire expired without an extension or a permanent diplomatic resolution. Brent crude futures edged up to $91.20 a barrel, while West Texas Intermediate climbed to $85.25 a barrel, fueled by shrinking traffic through the strategic Strait of Hormuz. President Donald Trump ruled out extending the memorandum of understanding and demanded Iran's surrender, while Tehran threatened a fully offensive military posture. Tanker transits through the Strait dropped sharply to single digits following recent attacks on vessels, forcing key regional producers like Saudi Aramco to seek alternative export routes. In broader financial markets, the expiration of the truce sent the 30-year U.S. Treasury yield up to an intraday high of 5.321 per cent, its highest level in nearly twenty years.
Peter Thiel bought a $76 million stake in Vista Energy, acquiring American depositary shares through his hedge fund Thiel Macro LLC. The purchase represents a 1% stake in the Argentine shale producer and follows a meeting earlier this year between Thiel and Argentine President Javier Milei. Vista operates in the Vaca Muerta formation, where it produces roughly 160,000 barrels of oil equivalent daily and has invested over $6.5 billion to date. The investment comes as Vaca Muerta's crude output hit a record 887,227 barrels per day in May, driven by foreign capital and government reforms designed to draw energy investments. For Thiel's fund, the Vista holding ranks as its second-largest disclosed position, trailing only Amazon. Shares of Vista Energy rose about 4.3% in premarket trading following the regulatory filing.