Over the weekend, Iran once again claimed it had blockaded the Strait of Hormuz, after which the U.S. said the Oman shipping lane was still operating normally. For this kind of news about the strait being blockaded or reopened during negotiations, the market has already built up considerable immunity — it was basically fully priced in as soon as Asian markets opened last Monday. So investors need not be overly sensitive to such news; just watch the market's reaction after the open. The relatively important events this week are the Fed Chair's testimony and the release of the CPI data, on which the market will place its bets regarding rate-hike expectations. Although I don't think the Fed will make any major rate-hike move, the market may use the occasion to react ahead of time, causing a c
Oil Rebounds: Can It Stabilize Within Ceasefire Window?
USO edged up 1.91% to $126.96, staging a technical recovery after yesterday's near-10% plunge as the geopolitical risk premium tied to the U.S.-Iran ceasefire window nears exhaustion. OPEC+ production increase expectations and slowing global demand growth continue to weigh on the medium-term outlook, with $130 as near-term resistance. Outcome would be agreement extension? Or breakdown-driven rebound?
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