High Grade Energy Weekly

Research evidence excerpt

High Grade Energy Weekly

Accessible version

Week ended June 26, 2026

Industry Overview

Energy spreads finish around 5-10 bps wider w-o-w 26 June 2026

HG Energy spreads finished largely around 5-10 bps wider w-o-w as oil prices fell ~8% High Grade Credit

w-o-w due to increased traffic in the Strait of Hormuz following the signed interim MoU United States

between the US and Iran last week. At an Index level, CIGD (HG Pipeline Index) and CIEN Energy, MLPs & Pipelines

(HG Energy Index) drifted modestly wider this week but still trade near record tight Daniel Lungo

levels vs the Corp Index (since 2013). Research Analyst

BofAS

WTI falls below $70/bbl for first time since March 4th +1daniel.e.lungo@bofa.com646 855 9965

Oil prices fell roughly 8% this week as flows coming out of the Strait improved Gavin Andersen

throughout the week. Prices steadily fell in the first half of the week, with WTI falling ResearchBofAS Analyst

below $70/bbl for the first time since March 4th. Despite a spike Thursday afternoon gavin.andersen@bofa.com

following reports that Iran's IRGC attacked a Singapore-flagged cargo ship in the Strait Peter Merlini

Research Analyst

of Hormuz, prices normalized Friday morning trading near $69/bbl. BofAS

peter.merlini@bofa.com

SoH flows improve despite vessel attack Thursday

Following progress on a US-Iran peace deal throughout the week, key parts of the oil

market have seen meaningful supply increases as flows through the Strait of Hormuz Exhibit 1: Energy has underperformed

ramp up. The IEA has reported that oil exports from the UAE in early June have the Corp Index this week

Weekly Excess Return (bps)recovered to nearly 85% of its pre-Iran war levels, rebounding even before the interim