Oil spikes near $110/bbl

Brent crude jumped $7.96, or 7.9%, to $109.12 per barrel at 1302 GMT while U.S. WTI shot to $112.60 — a 12.5% intraday gain that Reuters said was the biggest absolute one‑day rise since 2020. (reuters.com) Trade data and shipping reports show the effective shutdown around the Strait of Hormuz has choked roughly 20% of global seaborne crude flows, a disruption the Thomson Reuters Institute flagged as a primary driver of the new risk premium in prices. (thomsonreuters.com) Global equity and bond markets recoiled on the oil move, with Reuters reporting early stock futures trading lower and AP noting Wall Street selling after energy risk spiked and U.S. crude briefly topped $110. (reuters.com) (apnews.com) TradingEconomics shows crude benchmarks up more than 40% month‑on‑month and cites models projecting Brent near $113.72 in 12 months if current conditions persist, underlining why forecasters are repricing inflation paths. (tradingeconomics.com) Bloomberg and market trackers report investors rotating into defense and energy equities this week, with the S&P aerospace & defense index up roughly 13.5% year‑to‑date and institutional flows into sector ETFs accelerating. (bloomberg.com) (markets.financialcontent.com) J.P. Morgan’s commodity team warned that a prolonged Brent price above $90 could shave about 0.6 percentage points off global GDP growth in H1 2026, a scenario economists link directly to the current supply shock and higher fuel costs for airlines and logistics chains. (jpmorgan.com) iShares data show the ITA aerospace & defense ETF and similar products have seen marked inflows this quarter, providing an explicit market channel from geopolitical risk to sector re‑rating as funds seek a “security” hedge. (ishares.com)