Emergency Update: Rates Are Getting Hit, Right Now

These usually come in the morning. This one couldn't wait — three tankers were hit near Hormuz around lunch and rates have been moving ever since.

I know these usually come in the mornings. There's been major movement starting around lunch and it can't wait until tomorrow.

Iran hit three commercial tankers near the Strait of Hormuz today. The US revoked Iran's oil sanctions relief in response. Oil was up more than 5% shortly after. All of that is bad for rates and bad for inflation, in that order.

Rates opened Monday at 6.4% — a seven-week low. They've bounced back toward 6.55–6.65% this afternoon, and that continues into tomorrow morning if the escalation holds overnight.

If you have a buyer who ran numbers on Monday and hasn't locked, they need to hear from you today. Not tomorrow.

Anyone considering locking this week: tomorrow morning matters. That's the whole message. I'll write more when I know more.