HORMUZ RISKS UNDERPRICED AS OIL AND YIELDS SURGE

Markets may be too optimistic about a quick reopening of the Strait of Hormuz. RBC warned that continued disruptions through June could tighten global oil supplies just as summer demand accelerates, potentially pushing crude prices back toward historic highs. At the same time, rising global bond yields are increasing pressure on equities and risk assets. The combination of elevated energy prices and tighter financial conditions could trigger renewed volatility across global stock markets.