Author: starbpo

Since Israel initiated attacks on Iran late last week, there have been a number of significant movements in the U.S. and worldwide benchmark oil prices. However, one indication helps investors understand how concerned they are about the possible breadth of the fight. As the Israel-Iran dispute grew more intense, President Donald Trump demanded Iran’s “unconditional surrender” on Tuesday. In addition to calling for the evacuation of Tehran, a city of about 10 million people, he also raised concerns about potential U.S. actions to increase its level of engagement in the fight. “The market is pricing in a wide range of…

It’s that time of year again, when demand for natural gas is boosted by the need to cool down during the summer heat. However, there are other factors that increase the risk of limited supplies of the fuel, which makes natural gas even more alluring to investors following a nearly 10% decline in prices so far in the second quarter. “Not equally,” according to Henry Hoffman, co-portfolio manager of the Catalyst Energy Infrastructure Fund MLXIX, summer cooling demand, low U.S. storage levels, risks associated with the Atlantic hurricane season, and growth in LNG exports will all have an impact this…

After a successful week for Wall Street and ahead of fresh trade negotiations with China scheduled for Monday, U.S. stock futures fell on Sunday. On Sunday evening, Dow Jones Industrial Average futures (YM00) fell about 60 points, or 0.1%. Nasdaq-100 futures (NQ00) and S&P 500 futures (ES00) fell by roughly 0.2%. In the meantime, gold (GC00) declined while front-month crude oil prices (CL.1) remained unchanged. The U.S. Dollar Index DXY, which measures the value of the US dollar against a basket of six competing currencies, also experienced a modest decline as Bitcoin (BTCUSD) dropped below $106,000. U.S. Trade Representative Jamieson…

Although tensions between the United States and Iran have been increasing, significant fluctuations in the price of gold and oil can provide insight into how serious the situation has gotten and provide a preview of what the world’s financial markets may do next. According to John Caruso, senior market strategist at RJO Futures, “gold and oil are two of the most geopolitically sensitive market barometers we have.” As a result, they are the “first places I look when geopolitical risks arise in the Middle East.” And there’s no doubt that those hazards have been increasing. Iran announced on Thursday that…

According to a statement released by Israeli Prime Minister Benjamin Netanyahu, “We struck at the heart of Iran’s nuclear weaponization program.” “We went after Iran’s top nuclear scientists who were developing the Iranian bomb. Additionally, we targeted the core of Iran’s ballistic missile program. The operation, he continued, “will continue for as many days as it takes to remove this threat.” The July delivery of the U.S. benchmark West Texas Intermediate crude (CLN25) (CL.1) reached a peak of $77.61, but more recently, it was up about 6% at slightly over $71. While key contracts were once again over their lows,…

Global financial markets were rocked by Israel’s military attacks on Iran on Friday, sparking fears that Tehran may strike back by attacking shipping via the Strait of Hormuz, one of the most important chokepoints for energy transportation in the world. If that occurs, it would cause supply disruptions for gas and oil, which might lead to a new wave of inflation worldwide. According to emailed remarks from Kristian Kerr, head of macro strategy at LPL Financial, “the main market concern lies with Iran potentially closing the Strait of Hormuz, a critical chokepoint for global oil and gas.” Following Israel’s airstrikes…

Having staved off several crises already this year, ranging from the tariff war to recession fears and rising bond yields, Citigroup thinks the S&P 500 will see the current one off too. The rule of thumb is that markets generally discount geopolitical risks quickly, if there’s no corresponding – and sustained – spike in oil prices, said a team of Citi strategists led by Dirk Willer in a note to clients on Friday. They believe events in the Middle East will only temporarily impinge on risk assets, and as worst-case scenarios have been averted so far, are retaining a positive…

As investors worried about a possible blow to the central bank’s independence and considered the possibility that interest rates might lower sooner than anticipated, indications that President Donald Trump might act quickly to appoint a successor to Federal Reserve Chair Jerome Powell sent the U.S. dollar plunging to a three-year low Thursday. At 97.39 Thursday morning, the ICE U.S. Dollar Index DXY, which compares the value of the dollar to a basket of six significant competitors, was down 0.3% and at its lowest level since March 2022. For the first time since September 2021, the euro (EURUSD) increased by 0.4%…

Jerome Powell, the head of the Federal Reserve, stated on Tuesday that there is a strong argument to be made for interest rate cuts in the near future, but that the Fed is delaying for the time being due to the anticipated rise in inflation brought on by the trade disputes in the United States. Republicans frequently asked Powell to explain why the Fed isn’t lowering rates at this time during his semiannual speech to Congress. They mentioned that central banks all over the world had cut their own borrowing costs, and they cited the comparatively low rate of inflation…

Powell asserts that “people will bear the consequences for a long time if we make a mistake.” Jerome Powell, the chair of the Federal Reserve, stated this week that he is not prepared to accede to President Donald Trump’s requests that interest rates in the United States be lowered soon. What, then, would persuade him? These three points from Powell’s congressional testimony provide insight into the prospects for lowering borrowing prices. No rate cut is anticipated in July. Powell is certain that, at least initially, high tariffs will raise inflation. Before determining when to lower interest rates, he wants to…