Oil prices have surged again following threats from the theocratic leadership of Mojtaba Khamenei, Iran’s Supreme Leader.
Iran has declared it will close the Strait of Hormuz, disrupting the global oil supply. Although energy agencies have released massive oil reserves, Iran’s threat to attack oil tankers passing through the Strait of Hormuz has raised concerns among other nations.
This supported oil prices to surge strongly again yesterday, surpassing $95 per barrel. It was not until this morning, when the United States announced it would deploy its Navy and allied forces to escort ships through the Strait of Hormuz, that oil prices began to ease, while gold saw a slight recovery after a heavy sell-off last night that pushed it down to around $5,050 per ounce.
In the short term, the market will likely continue to fluctuate based on macroeconomic news. Therefore, this is a time when trading requires extreme caution and continuous monitoring of the actions from both sides in order to grasp the situation as early as possible.
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