Oil prices jumped nearly 7% after fresh reports that the Strait of Hormuz has been closed again amid rising tensions between the U.S. and Iran.
Since this route carries about 20% of the world’s seaborne oil, even a short disruption can trigger strong reactions in the market.
Brent is moving close to $97 and WTI around $90.
This situation could bring added volatility not just to oil, but also to gold, indices, and forex in the coming sessions.
What do you think — is this just a short-term spike, or the start of a bigger move?
Oil prices climbed about 7% after news that the Strait of Hormuz was closed again, raising fresh concerns about global oil supply.
byu/Brave-Jury-9175 ineconomy
Posted by Brave-Jury-9175
3 Comments
Didn’t we just watch this episode last week?
Depends entirely on April 22. If the ceasefire expires without a deal, this isn’t a spike, it’s the new floor. The market already priced in peace twice this week and was wrong both times. At some point that pattern stops being a buying opportunity and starts being the actual reality.
I found it interesting that oil didnt spike to 150usd. It seems the oil crisis is not that bad after all.