[MARKET UPDATE] : Brent rises above USD 98/bbl amid commentary from Energy Secretary Wright, weighing on equity and T-note futures

• The moves appear to be in response to commentary from Energy Secretary Wright that the Navy escort will happen relatively soon, but it cannot happen right now. However, he did suggest it is quite likely by the end of the month. This implies at least a couple more weeks before the situation starts to normalise. Also, the SPR release of 172mln bbls will need to be repaid, albeit with interest to return 200mln bbls back to the SPR within a year. This will see more oil on the market in the short term, but the net impact is a tighter market by c. 28mln bbls in the long run. 

Brent crude surpassing $98/bbl reflects concerns over delays in military escorts, suggesting geopolitical tensions may persist. With oil supply adjustments through the SPR release offsetting some immediate pressures, the market could face tighter conditions in the future, hinting at potential impacts on inflation and energy-dependent equities.