{"id":61822,"date":"2026-05-11T15:38:23","date_gmt":"2026-05-11T19:38:23","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oil-surges-to-104-as-fed-delays-rate-cuts-and-uk-leadership-crisis-intensifies\/61822\/"},"modified":"2026-05-11T15:38:23","modified_gmt":"2026-05-11T19:38:23","slug":"oil-surges-to-104-as-fed-delays-rate-cuts-and-uk-leadership-crisis-intensifies","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oil-surges-to-104-as-fed-delays-rate-cuts-and-uk-leadership-crisis-intensifies\/61822\/","title":{"rendered":"Oil Surges to $104 as Fed Delays Rate Cuts and UK Leadership Crisis Intensifies"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Brent Crude futures settled at $104.21\/bbl (+2.88%)<\/strong>, driven by escalating geopolitical tensions and a lack of progress in Iranian nuclear negotiations.<\/li>\n<li><strong>Goldman Sachs and Bank of America pushed back Fed rate cut forecasts to year-end 2026<\/strong>, signaling a prolonged period of high interest rates as inflation pressures persist.<\/li>\n<li><strong>UK Prime Minister Keir Starmer faces a critical cabinet revolt<\/strong>, with senior ministers reportedly preparing to demand his resignation following a wave of PPS departures.<\/li>\n<li><strong>Ford Motor Co. (<a href=\"\/stock\/F\">F<\/a>) launched &quot;Ford Energy,&quot;<\/strong> a new division targeting 20 GWH of annual energy deployment with initial customer deliveries slated for late 2027.<\/li>\n<li><strong>The Trump administration signaled aggressive trade and foreign policy shifts<\/strong>, including a proposed ban on Chinese vehicles and a refusal to rule out military options against Iran.<\/li>\n<\/ul>\n<h2>Global Energy and Monetary Policy<\/h2>\n<p><strong>Brent Crude<\/strong> prices surged nearly 3% on Monday, closing at <strong>$104.21 per barrel<\/strong>, while <strong>US Crude (WTI)<\/strong> settled at <strong>$98.07 per barrel<\/strong>. The rally comes as <em>geopolitical uncertainty<\/em> peaks, fueled by reports from the Iranian negotiating team that no agreement has been reached regarding the removal of enriched nuclear materials.<\/p>\n<p>In a significant blow to market sentiment, <strong>Goldman Sachs<\/strong> and <strong>Bank of America<\/strong> officially delayed their forecasts for <strong>Federal Reserve<\/strong> rate cuts until the end of 2026. Analysts suggest that the <em>resilience of energy prices<\/em> and trade volatility have forced a &quot;higher-for-longer&quot; consensus among major financial institutions.<\/p>\n<h2>UK Political Turmoil<\/h2>\n<p>Prime Minister <strong>Keir Starmer<\/strong> is facing his most significant leadership challenge to date, with <strong>Cabinet members<\/strong> reportedly gearing up to tell him &quot;the game is up&quot; during tomorrow&#39;s meeting. The crisis intensified after a succession of Parliamentary Private Secretaries (PPS) resigned, calling for a change in leadership to avoid &quot;chaos&quot; similar to previous administrations.<\/p>\n<p>Internal friction has also spilled into the open, with a soft-left MP criticizing <strong>Wes Streeting<\/strong> as a &quot;selfish opportunist&quot; for his perceived role in the unfolding instability. <em>Downing Street<\/em> has reportedly begun a frantic effort to shore up support among ministers after three days of relative silence from the Prime Minister\u2019s office.<\/p>\n<h2>US Trade and Corporate Developments<\/h2>\n<p>The <strong>White House<\/strong> announced that President Trump will sign executive orders on Monday to increase <strong>beef imports<\/strong> and support the renewal of the US cattle herd. Simultaneously, US House lawmakers introduced a bill to <strong>prohibit Chinese vehicles<\/strong> in the United States, a move echoed by Deputy Press Secretary Kelly\u2019s comments expecting &quot;more favorable deals&quot; following <strong>Trump-Xi<\/strong> talks.<\/p>\n<p>In the corporate sector, <strong>Ford Motor Co. (<a href=\"\/stock\/F\">F<\/a>)<\/strong> shares are in focus after the launch of <strong>Ford Energy<\/strong>. The company aims to deploy <strong>20 GWH<\/strong> of annual energy capacity by 2027, marking a major pivot toward integrated energy solutions. Meanwhile, <strong>Canadian National Railway Co. (<a href=\"\/stock\/CNI\">CNI<\/a>)<\/strong> has urged the STB to reject the amended merger application between <strong>Union Pacific (<a href=\"\/stock\/UNP\">UNP<\/a>)<\/strong> and <strong>Norfolk Southern (<a href=\"\/stock\/NSC\">NSC<\/a>)<\/strong>, citing an incomplete application.<\/p>\n<h2>Crypto and Geopolitics<\/h2>\n<p><strong>Coinbase (<a href=\"\/stock\/COIN\">COIN<\/a>)<\/strong> CEO <strong>Brian Armstrong<\/strong> is scheduled to address the <strong>Senate GOP Steering Lunch<\/strong> this Wednesday. The meeting is expected to focus on digital asset regulation and the industry&#39;s role in the US economy amid tightening financial conditions.<\/p>\n<p>On the global stage, tensions remain high as <strong>Iranian<\/strong> sources indicated they would not accept the removal of enriched materials from the country. The <strong>White House<\/strong> has maintained that &quot;all options are on the table&quot; regarding Iran, while Iranian officials countered that their armed forces are ready to deliver a &quot;well-deserved response&quot; to any aggression.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Brent Crude futures settled at $104.21\/bbl (+2.88%), driven by escalating geopolitical tensions and a lack of progress in 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