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The Hormuz negotiations are at a standstill, and the tension in the Middle East continues to "heat up" oil prices

Supported by the uncertainty of the reopening prospects of the Strait of Hormuz and the ongoing tensions in the Middle East, both WTI and Brent crude oil prices continued to rise in the U.S. trading session. Iran reiterated several conditions before agreeing to fully reopen the strait. According to Al Jazeera, the conditions proposed by the Secretary of the Supreme National Security Council of Iran, Zolghadr, include: ending the U.S. maritime blockade and the withdrawal of the U.S. Navy and Air Force from around Iran.Tehran also demanded compensation for damages caused by recent conflicts, the lifting of sanctions, and the unconditional unfreezing of Iranian assets. These demands currently reduce the likelihood of a swift return to normal shipping and help maintain the risk premium in WTI prices. Meanwhile, negotiations with Oman to establish a secure shipping route through the Strait of Hormuz seem to be making progress.However, due to the failure to reach an agreement on full reopening, investors remain cautious about the risks of long-term disruptions to oil supply. Regional tensions are not limited to the Strait of Hormuz. The Iran-backed Houthi forces in Yemen claimed responsibility for a drone attack on Saudi Aramco's refinery in Saudi Arabia. The latest attacks on major energy infrastructure have heightened market concerns about the security of regional oil supplies.

hot_img MLCC supply is in short supply: customers are raising prices two to three times to secure materials, with delivery times extended to 12-16 months

Driven by strong demand for AI, the MLCC market has seen a surge in price chasing and material grabbing. Industry sources indicate that some customers are willing to pay two to three times the price to secure supplies from major manufacturers like Yageo and Murata, creating a situation where the highest bidder wins. Yageo has admitted that AI-related customers are increasingly looking to lock in capacity in advance to reduce supply risks. Currently, major MLCC manufacturers are fully booked, with capacity nearing full load, and delivery times have extended to 12 to 16 months.In terms of capacity, Yageo expects the utilization rate for standard products this quarter to increase from about 80% in Q2 to over 90%, while special products will maintain a high level above 90%, overall trending towards full capacity. The company is also expanding production, with new capacity set to come online each quarter. Japanese manufacturers are also optimistic, with Murata significantly raising its annual profit forecast, and Taiyo Yuden stating that demand for AI servers has exceeded expectations. Industry insiders point out that large customers typically have a higher priority for capacity allocation, while small and medium-sized customers can only compete for limited supplies by offering higher prices. Yageo has noted that more and more customers wish to secure passive component supplies for the next six months to several years through long-term contracts to mitigate supply chain risks.
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