Just a week ago, analysts were singing from the same hymn sheet: we have too much oil. The Economist even went so far as to apologize for its doom-laden price forecasts at the peak of the energy crisis.
Fast forward a few days, and the landscape has been turned on its head. Iran attacked tankers in the Strait of Hormuz, and the U.S., once again, felt compelled to step in and “restore peace” to the region. The upshot? Oil prices skyrocketed as much as 10% within a single week.
Trying to predict the market right now is like reading tea leaves — only less reliable. Even horoscopes would give you a better run for your money. Volatility is off the charts, with crude swinging like a meme stock on a caffeine high.
The most unnerving part? Nobody knows for sure whether the strait is open or closed. Trump insists it is; Iran begs to differ. And shipping companies aren’t about to roll the dice.
Traffic through the Strait of Hormuz slumped to a five-week low on Sunday, according to Reuters.
