Oil is up almost 2%, but well off early five-month peaks as analysts note OPEC has plenty of extra supply to add if they want.
Wall St share futures are down 0.3%, having started with losses of 1%, while European futures are off 0.4% or so. The dollar is marginally firmer on the euro and yen, reflecting the reliance of the EU and Japan on imported oil and LNG, and the U.S. status as a net exporter.
Treasury yields are up slightly, so not many safe-haven bids there, while Fed fund futures are down a tick, likely on the risk a sustained rise in energy costs could add to inflationary pressure just as tariffs are being felt in prices.
Fed Chair Jerome Powell is set for a grilling on all this when he faces Congress on Tuesday and Wednesday, along with queries on Trump's threats to fire him. It will also be interesting to see how Powell responds to Fed Governor Waller's sudden embrace of a July rate cut, when it seemed the FOMC choir had all been singing from the same cautious hymn sheet.
Markets imply still only a 16% chance of a July easing, preferring a 70% wager on a September move.
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