Jack Reed

Reed describes the NDS as "littered with partisan commentary" and attacking the "rule-based international order." He notes the US is engaging in "unilateral" conflict without Congressional approval. The erosion of the "rule-based international order" and the weaponization of the US dollar/military in unilateral actions encourages foreign central banks to diversify reserves away from Treasuries and into hard assets. Gold is the primary beneficiary of geopolitical instability and institutional distrust. LONG. Gold acts as the hedge against the "chaos" and "unprecedented set of strategic threats" described by the committee. High real interest rates or a strengthening dollar due to flight-to-safety flows.

Senator Reed notes the US has engaged in "major combat operations against Iran," including thousands of strikes on "missile sites, command and control sites, and senior regime leadership," and that the conflict is "rapidly spreading throughout the Middle East." War with Iran is the ultimate supply shock scenario for global energy. Even if the US is energy independent, global pricing (Brent/WTI) will spike on fears of Strait of Hormuz closure or retaliation against Gulf infrastructure. LONG. Energy commodities and producers are the primary hedge against this specific geopolitical escalation. A quick diplomatic resolution or US release of strategic reserves dampening price spikes.

Senator Reed notes the US has engaged in "major combat operations against Iran," including thousands of strikes on "missile sites, command and control sites, and senior regime leadership," and that the conflict is "rapidly spreading throughout the Middle East." War with Iran is the ultimate supply shock scenario for global energy. Even if the US is energy independent, global pricing (Brent/WTI) will spike on fears of Strait of Hormuz closure or retaliation against Gulf infrastructure. LONG. Energy commodities and producers are the primary hedge against this specific geopolitical escalation. A quick diplomatic resolution or US release of strategic reserves dampening price spikes.