G7 central banks prepare synchronized rate increases as crude inventories fall to 98.4th percentile of 12-month range.
West Texas Intermediate crude reached $112.25 per barrel on May 18, 2026, a 30.7% monthly gain, as the Strait of Hormuz blockage depletes global energy reserves. The price sits at the 98.4th percentile of its 12-month range, signaling tightening supply conditions.
The European Central Bank and Bank of Japan are set to raise rates in June, adding to synchronized G7 monetary tightening. Analysts warn that mid-year inventory drawdowns could shift price pressures into outright fuel shortages, amplifying macroeconomic risks.
Markets face dual pressure from rising energy costs and coordinated rate hikes, potentially compressing financial conditions through multiple channels simultaneously.