Geopolitical tensions remain high, the Strait of Hormuz is closed, and ships are actively being attacked in the Gulf. The temporary market surges based on unverified peace claims are head-fakes; the underlying physical supply risks for crude oil remain completely unresolved. Buying oil is a hedge against the ongoing Middle East conflict and the perceived political manipulation of broader equity markets. Actual, verified de-escalation between the US and Iran could cause oil prices to plummet.
Geopolitical tensions remain high, the Strait of Hormuz is closed, and ships are actively being attacked in the Gulf. The temporary market surges based on unverified peace claims are head-fakes; the underlying physical supply risks for crude oil remain completely unresolved. Buying oil is a hedge against the ongoing Middle East conflict and the perceived political manipulation of broader equity markets. Actual, verified de-escalation between the US and Iran could cause oil prices to plummet.