"In the absence of a coherent U.S. strategy to reopen the Strait of Hormuz, investors are likely to focus on Iranian actions as the market driver. Oil is trading like a meme stock, with UBS's Paul Donovan noting that without clear policy direction, geopolitical factors will continue driving price volatility and market uncertainty."
"KPMG chief economist Diane Swonk worries that the conflict will drag on for up to six more months, sending oil prices north of $130 per barrel. Some analysts think it could hit $200. LPL Financial's Adam Turnquist believes the oil market has mirrored its 2022 behavior when Russia invaded Ukraine, pushing prices from $65 to $139."
"MacQuarie analysts Thierry Wizman and Gareth Berry told clients that oil will trade like a meme stock until the fighting ends, perhaps at month end. The threat of conflict in early 2022 pushed prices from roughly $65 in early December to a peak of $139 as the war unfolded."
S&P 500 futures fell 0.55% following a flat close, with blue chips down 1% year-to-date. Major global indexes declined, particularly Japan's Nikkei 225 down 1%, as oil prices spiked past $100 despite record releases from the International Energy Agency and U.S. Strategic Petroleum Reserve. Oil trading exhibits meme stock behavior driven by Iranian actions and geopolitical uncertainty. Analysts project oil could reach $130-$200 per barrel if conflict extends six months. California gas prices hit $5.20. Bitcoin outperformed traditional assets since conflict began. Market volatility reflects investor focus on conflict resolution and energy supply disruption.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]