{"id":61405,"date":"2026-04-29T09:38:21","date_gmt":"2026-04-29T13:38:21","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oil-surges-to-116-amid-iran-tensions-us-housing-starts-hit-2024-highs\/61405\/"},"modified":"2026-04-29T09:38:21","modified_gmt":"2026-04-29T13:38:21","slug":"oil-surges-to-116-amid-iran-tensions-us-housing-starts-hit-2024-highs","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oil-surges-to-116-amid-iran-tensions-us-housing-starts-hit-2024-highs\/61405\/","title":{"rendered":"Oil Surges to $116 Amid Iran Tensions; US Housing Starts Hit 2024 Highs"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Brent Crude oil prices surged to a session high near $116 per barrel<\/strong> following reports of a potential months-long Iran blockade and threats of &quot;unprecedented military action&quot; from Tehran.<\/li>\n<li><strong>US Housing Starts jumped 10.8% in March to a 1.5 million annual rate<\/strong>, significantly outperforming analyst estimates and marking the highest level of homebuilding activity since late 2024.<\/li>\n<li><strong>The US Dollar briefly touched the 160 Yen level<\/strong>, hitting its highest point since early April as markets brace for a pivotal Federal Reserve press conference.<\/li>\n<li><strong>China Southern Airlines (<a href=\"\/stock\/600029.SS\">600029.SS<\/a>) and its subsidiaries announced a massive $21.4 billion order for Airbus (<a href=\"\/stock\/AIR\">AIR<\/a>) aircraft<\/strong>, signaling a major expansion in regional aviation capacity.<\/li>\n<li><strong>Global food security risks are rising<\/strong> as fertilizer prices spike; Urea prices have doubled since January to <strong>$900 per ton<\/strong> due to escalating disruptions in the Strait of Hormuz.<\/li>\n<\/ul>\n<h2>Geopolitical Tensions Drive Energy and Commodity Spikes<\/h2>\n<p><strong>Brent Crude<\/strong> prices extended gains today, reaching a session high of <strong>$116\/bbl<\/strong>. The rally follows reports that Donald Trump has held discussions with oil company executives regarding a strategy to maintain a blockade on Iranian oil exports for several months if necessary. <em>Market participants are reacting to the increased risk of supply tightening as geopolitical friction intensifies in the Middle East.<\/em><\/p>\n<p>In response to US seizures of Iran-linked vessels, Tehran has warned of <strong>&quot;unprecedented military action.&quot;<\/strong> This escalation is already impacting global supply chains, specifically through the Strait of Hormuz. Fertilizer prices have reacted violently to these disruptions, with <strong>Urea prices doubling since January to $900 per ton<\/strong>, the highest level since 2022, threatening global food production costs.<\/p>\n<h2>US Economy Shows Resilience Ahead of Fed Decision<\/h2>\n<p>The US housing market displayed unexpected strength in March, with <strong>Housing Starts rising 10.8% to a 1.5 million annual rate<\/strong>. This figure comfortably beat the estimated <strong>1.38 million<\/strong>, driven by a <strong>9.7% climb in single-family starts<\/strong>. <em>The surge suggests that homebuilders are ramping up activity despite high interest rates, potentially buoyed by limited existing home inventory.<\/em><\/p>\n<p>Other economic indicators also surprised to the upside. <strong>US Durable Goods Orders grew by 0.8% in March<\/strong>, exceeding the <strong>0.5% forecast<\/strong>. Additionally, <strong>Wholesale Inventories rose 1.4%<\/strong>, well above the <strong>0.4% estimate<\/strong>, indicating that businesses are restocking aggressively. These robust data points provide a complex backdrop for the Federal Reserve as it weighs its next move.<\/p>\n<h2>Monetary Policy and Currency Volatility<\/h2>\n<p>All eyes are on <strong>FOMC Chair Jerome Powell<\/strong>, who is scheduled to hold a press conference at <strong>2:30 p.m. ET today<\/strong>. Markets are looking for clarity on whether the Fed will prioritize rate cuts or continue its balance sheet reduction program. <em>Analysts suggest the Fed may seek to reverse &quot;mission creep&quot; into non-monetary areas like climate and ESG to focus strictly on inflation and employment.<\/em><\/p>\n<p>The <strong>US Dollar<\/strong> saw significant volatility, briefly hitting <strong>160 Yen<\/strong>, its highest level since April 7. Meanwhile, in Europe, <strong>German CPI for April came in at 2.9%<\/strong>, matching estimates but showing a slight uptick from the previous <strong>2.7%<\/strong>. <em>The persistence of inflation in the Eurozone, coupled with energy price shocks, may complicate the European Central Bank&#39;s plans for a rate hold later this week.<\/em><\/p>\n<h2>Corporate Developments and Global Trade<\/h2>\n<p>In the aviation sector, <strong>China Southern Airlines (<a href=\"\/stock\/600029.SS\">600029.SS<\/a>)<\/strong> committed to a <strong>$21.4 billion purchase of Airbus (<a href=\"\/stock\/AIR\">AIR<\/a>) planes<\/strong>. This massive deal comes despite ongoing trade tensions, as the China Commerce Ministry recently warned that certain international trade proposals violate WTO rules. <em>The move underscores China&#39;s long-term commitment to expanding its domestic and international flight networks.<\/em><\/p>\n<p>In M&amp;A news, the private equity firm <strong>EQT (<a href=\"\/stock\/EQT\">EQT<\/a>)<\/strong> is reportedly preparing a superior takeover offer for <strong>Intertek (<a href=\"\/stock\/ITRK\">ITRK<\/a>)<\/strong>. In the real estate sector, <strong>China Vanke (<a href=\"\/stock\/000002.SZ\">000002.SZ<\/a>)<\/strong> reported a first-quarter net loss of <strong>5.95 billion yuan<\/strong>, a slight improvement over the previous year&#39;s loss, as the Chinese property market continues its slow recovery.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Brent Crude oil prices surged to a session high near $116 per barrel following reports of a potential 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