Market Greed Is Back: Oil and the Hormuz Strait Didn’t Get the Memo.
The CBOE Volatility Index rose 2.2% as renewed Middle East tensions and crude price spikes reintroduced risk premium into options markets. The index hovered just above 17, despite the S&P 500 setting a fresh all-time high of 7,230 the previous trading session.
The CBOE Volatility Index is up 2.2% to hover just above 17, driven by renewed Middle East tensions and crude price spikes. WTI crude sits above $100 a barrel following a 10% weekly surge, and Brent is trading above $110. The conflict near the Strait of Hormuz is now in its third month, with fresh reports of a U.S. warship incident adding to the tension. The UAE's exit from OPEC has reduced the cartel's share of global production to 29%, with at least 12 million barrels per day effectively shut in as Hormuz traffic stalls. The S&P 500 set a fresh all-time high of 7,230 the previous trading session, while the Fear & Greed Index remains at 66, firmly in greed territory. Earnings from major companies and the April jobs report are key events to watch this week, which could push the VIX through 20 or send it back toward 15.
This content was automatically generated and/or translated by AI. It may contain inaccuracies. Please refer to the original sources for verification.