The escalation of the Middle East war sent oil prices sharply higher and pulled interest rates up, too. September WTI rose by more than 10% for a three-week increase of more than 25%. Neither side seems prepared to back down. However, judging by the largest spread this year (~$11) between the September WTI and the December contract suggests many participants suspect the current high level of stress will not be sustained. Yet, reports of the movement of munitions and people are consistent with a dramatic escalation. Moreover, last week, for the first time in the conflict, the Houthis struck ships in the Strait of ... (full story)