Brent crude futures rose toward $107 per barrel on Friday. This extension of a multi-day rally follows an intensifying military standoff between the U.S. and Iran. The Strait of Hormuz remains shut down after President Trump ordered the U.S. Navy to shoot Iranian boats laying mines.
The closure affects a critical waterway where one-fifth of global oil and LNG supplies normally transit. This disruption maintains a significant risk premium on global energy prices.
Higher prices provide a revenue tailwind for energy producers in the VDE ETF. However, the sustained increase amplifies global inflation risks and threatens economic stability.