Oil Spikes on Iran/Strait of Hormuz Tensions

Oil prices jumped 7% after Iran strikes and renewed Strait of Hormuz risk. Today oil is flat as tensions stabilize, but the inflation shock remains a wildcard for Fed policy. Energy sector benefits (refinery stocks at all-time highs), but broader market fears a stagflationary scenario. VIX remains elevated at 20. Latest: Oil prices dropped on Iran de-escalation talks, providing some relief to inflation fears. Oil fell below $80 on August 1, with OPEC+ supply increase also contributing. The drop fueled a broad market rally.