The U.S. Department of Energy has issued an Energy Emergency Alert for PJM Interconnections through Friday, instructing the grid operator to conserve power and take steps to avoid blackouts. PJM forecasts peak electricity demand of 166,304 megawatts on Thursday, which would surpass a record set in 2006. Other regional grids including New York, the Midwest and New England are also under strain, with rolling outages possible in some localized areas. The situation highlights a sharp short-term mismatch between electricity supply and demand and is poised to act as a notable catalyst for prices and profitability across U.S. wholesale power markets and grid operators.

U.S. initial claims for unemployment benefits fell to 226,000, underscoring a resilient labor market. May CPI accelerated to 4.2%, the highest level in three years, after the closure of the Strait of Hormuz lifted oil and gas prices. Iran and the U.S. agreed to a ceasefire deal, with the strait set to reopen, easing near-term upward pressure on oil. The Federal Reserve held rates steady, while new Chair Kevin Warsh’s first meeting struck a hawkish tone and several officials weighed at least one rate hike this year.