Fed-linked survey finds firms absorb oil cost shock as inflation fears rise to 25% in Q2 2026

A joint Federal Reserve Bank survey found companies have largely absorbed higher oil costs so far, but concern about inflation is rising sharply, with 25% of firms calling it their most pressing issue. The Strait of Hormuz’s main route remains mined and closed, leaving traffic at roughly one-third of prewar levels, while strategic oil reserves have fallen to their lowest levels in decades. The EIA expects oil prices to stabilize at still-elevated levels rather than return to prewar norms. Persistent supply constraints are described as a material tailwind for crude and Brent prices.