🚨 BRENT JUST HIT $116.72, A SIX MONTH HIGH. THE IRAN WAR IS NOW A TAX ON THE WHOLE WORLD.
Brent closed Friday at $116.72, up about 6% this week. WTI is above $103.
Why now:
→ Houthi attacks on Saudi energy sites. Aramco ordered the evacuation of its Dhahran headquarters
→ Two tanker attacks confirmed near Hormuz this week
→ Traders expect the US to resume strikes on Iran
Oil is still moving through Hormuz, so a big part of this jump is fear. That can change fast in both directions.
What it does to the world:
→ US gasoline rose 9.1% in September alone. US CPI is 3.7%
→ Euro area inflation is 3.8%, with energy up 18.8%
→ The IMF says Asia and Europe are hit the hardest
→ US, German and Japanese 10 year yields are at their highest since 2007, 2009 and 1996
→ The Fed, the ECB, the BoJ and Korea are all tightening, and Canada may hike next week
The IMF also warns that high oil prices could last into 2027, even if the conflict ends soon.
Higher oil means higher inflation. Higher inflation means higher rates. Higher rates mean pressure on stocks and crypto.
The Fed decides on October 28. If it talks tough on energy prices, the market will notice.
$XAU $BTC $ETH
Brent closed Friday at $116.72, up about 6% this week. WTI is above $103.
Why now:
→ Houthi attacks on Saudi energy sites. Aramco ordered the evacuation of its Dhahran headquarters
→ Two tanker attacks confirmed near Hormuz this week
→ Traders expect the US to resume strikes on Iran
Oil is still moving through Hormuz, so a big part of this jump is fear. That can change fast in both directions.
What it does to the world:
→ US gasoline rose 9.1% in September alone. US CPI is 3.7%
→ Euro area inflation is 3.8%, with energy up 18.8%
→ The IMF says Asia and Europe are hit the hardest
→ US, German and Japanese 10 year yields are at their highest since 2007, 2009 and 1996
→ The Fed, the ECB, the BoJ and Korea are all tightening, and Canada may hike next week
The IMF also warns that high oil prices could last into 2027, even if the conflict ends soon.
Higher oil means higher inflation. Higher inflation means higher rates. Higher rates mean pressure on stocks and crypto.
The Fed decides on October 28. If it talks tough on energy prices, the market will notice.
$XAU $BTC $ETH