Oil reserves, tariff investigations, airline fuel prices and more in Morning Squawk

• The IEA's unprecedented oil reserves release and U.S. insurance program for tankers failed to lower prices as attacks continue in the Persian Gulf, disrupting the Strait of Hormuz
• February CPI rose 0.3% month-over-month and 2.4% annually, meeting expectations but remaining stagnant above the Federal Reserve's inflation target ahead of new tariffs
• Airlines are expected to raise ticket prices due to surging fuel costs while the U.S. budget deficit decreased 12% year-over-year through February, partly driven by increased tariff collections

Market Summary: Oil Reserves, Tariffs, and Rising Costs

Oil Supply and Prices

The International Energy Agency announced its largest-ever emergency reserves release to address supply disruptions from the Iran war, though no timeline was provided. The U.S. will contribute 172 million barrels over approximately 120 days, according to Energy Secretary Chris Wright. Despite these measures, Brent crude briefly hit $100 per barrel as continued attacks on ships in the Persian Gulf and ongoing Strait of Hormuz disruptions kept investor concerns elevated. The U.S. has partnered with insurance providers on a $20 billion program to encourage tanker traffic through the strait.

Inflation Data

February's Consumer Price Index rose 0.3% month-over-month and 2.4% year-over-year, meeting economist expectations. Both headline and core inflation rates remained unchanged, indicating persistent inflation above the Federal Reserve's target without worsening. Markets showed minimal reaction as focus remained on oil prices, with analysts noting the data is essentially "stale" ahead of incoming tariff impacts.

Trade Policy

The Trump administration launched Section 301 trade investigations into Mexico, China, the EU, Japan, India, and Vietnam to replace Supreme Court-blocked broad tariffs. Meanwhile, the U.S. budget deficit narrowed 12% year-over-year through February, driven by increased tariff revenue collections.

Corporate Developments

Google is spinning off its GFiber broadband business, merging it with Astound Broadband while retaining a minority stake. The transaction is expected to close in Q4 2026.

Airline Industry

Rising fuel costs are expected to drive airfare increases, with airlines reporting strong travel demand that could enhance pricing power. Several global carriers have already announced fare hikes.