Markets left to figure out sanctions
USO•Oil prices slipped after President Donald Trump waived some Russia-related sanctions, though it remained unclear whether Russian exports could increase. Brent futures fell about 1.5%, while tanker rates and insurance charges reached record highs amid shipping disruptions.
1. Sanctions uncertainty weighs on oil
Oil slipped on the possibility of increased Russian shipments after Trump waived some sanctions on Moscow, but Trump said officials would “figure it out,” and Secretary of State Marco Rubio said the administration wanted up to 60 days to assess the economic impact of the sanctions and tariffs. It was unclear whether Russia could increase exports as Ukraine continued attacks on oil and logistics infrastructure.
2. Shipping disruptions raise costs
Iran said an oil tanker caught fire and exploded after striking a naval mine in the southern Strait of Hormuz, while the United Kingdom Maritime Trade Operations reported more attacks on shipping. Tanker rates reached record highs and insurance charges rose, adding to shipping costs and physical delivery prices. Brent futures were down about 1.5%, Treasuries extended their rally and Wall Street futures edged higher.
3. China and earnings in focus
China’s economy grew 4.5% in the third quarter, slightly above forecasts; retail sales rose 1.1% and industrial output grew 5.5%. Investors were looking to company results this week, with tech-sector earnings growth expected at 65%. Meta was due to report Wednesday and needs revenue of $62.5 billion to reach the midpoint of its own guidance; it expects 2026 capital spending of $130 billion to $145 billion.
