Following the failed negotiations between the USA and Iran, despite Pakistan's efforts.
It seemed like oil prices were going to swing wildly, but nope, they're currently hovering around 88 to 90. However, that's not the whole picture of the market. After President Trump shifted the capital flow, the USA became the global oil distribution hub.
Not stopping there, the UAE quickly influenced Iran's financial resources, even though the UAE used to be the exit point for Iran's 'underground' monetary system (many shell companies). This fallout was initiated by Iran itself when it pressured the UAE to lean towards the USA.
This liquidity squeeze phase from the UAE and the U.S. is hitting right at the heart of Iran.
What are the reactions and implications related to logistics? Ocean freight costs are rising, concerns about escalating tensions, logistics are becoming a bottleneck. This complicates cash flow.
The FED is increasingly worried about the decision to maintain or cut interest rates (due to inflation). Real estate is burdened with high rates, government/corporate debt is rising, making refinancing difficult.
If energy prices rise, it will lead to increased costs for the economy.
As for the retailers and the logistics sector, they will feel immense pressure if their goods face delays causing significant disruptions.
The longer businesses are squeezed if oil prices bounce back, the financial system will have to choose an alternative path for better liquidity. The only option left is the Crypto route.
THIS POST IS BASED SOLELY ON PERSONAL OPINION.