A fresh round of strikes in the Middle East set oil markets scrambling.

From Marketplace, I'm Kimberly Adams.

Oil prices are still heading up this morning, but a bit more slowly after tensions in the Middle East appear to be easing.

Earlier today, Israel and Iran attacked each other for the first time since the ceasefire in April.

Now Iran is reportedly suspending its strikes, and Israel looks set to de-escalate with Iran as well.

President Trump demanded via Truth Social Post earlier this morning that both sides stopped the attacks.

Marketplace's Nancy Marshall-Genzor joins me now with more. Good morning, Nancy.

Good morning. So what's behind these rising oil prices? Why are traders bidding up crude? Well, with this upsurge and airstrikes between Israel and Iran, this trade of Hermuz isn't going to fully reopen soon. Of course, about 20% of the world's oil goes through the street. Traders know oil prices won't go back to where

they were before the war until the strait is open, so their betting prices will stay higher for longer.

But some OPEC members announced over the weekend that that cartel will increase production.

Will that help? Probably not. The seven OPEC-plus countries, including Saudi Arabia, Iraq, Amman, and Russia. They say they'll boost production by 188,000 barrels per day starting next month. But Kimberly, this is really just a symbolic move. A production hike doesn't help if you can't get the oil out of the strait. And Russian production is taking a hit from Ukrainian drone strikes.

The cost of jet fuel is also soaring because of all of this.

What are the airlines saying?

Well, the International Air Transport Association says airline profits will be cut in half because of the war in the Middle East,

and not just because of higher prices for jet fuel, also because of other disruptions.

Remember, the airspace over the Persian Gulf was shut down at the beginning of the war.

The Association says airlines in the Middle East will fall into the red.

It expects overall global airline profits of $23 billion this year, and that's about half its previous projection.

Marketplace is Nancy Marshall-Genzor. Thank you so much, Nancy. You're welcome.

Now, for more on the markets as we start the week, I'm joined by Julia Coronado, founder and president of macro policy perspectives. Good morning, Julia.

Good morning. So we had quite the market reaction last week to the jobs report,

which has been called a lot of different things in terms of the reaction from a route to a sell-off.

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