Global oil market isn’t ready for the Iran ceasefire to end
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Complacency in the oil market masks the threat of an undeclared naval war in the Strait of Hormuz
While financial markets display a dangerous level of complacency, rapidly accelerating military strikes between the United States and Iran in the Strait of Hormuz threaten to trigger a massive, undeclared naval war.
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The largest-ever global oil supply shortage has topped economists’ lists of concerns since the start of the Iran war. But even as the United States and Iran resumed their blockades of the Strait of Hormuz,
Markets were subdued ahead of a busy week for markets, with inflation reports, bank earnings, and geopolitical risk hanging in the balance.
Oil futures climbed sharply Monday, with both major benchmarks gaining more than 6%. September Brent crude rose $4.63, or 6.1%, to $80.64 a barrel. It was on pace for its biggest one-day dollar gain since May 4 and largest percentage increase since April 2,
Global prices fell to near their pre-Iran war level after the United States unblocked international Iranian oil sales and ships transit Hormuz Strait.
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Jeff Currie, senior advisor at the Carlyle Group and executive co-chairman of Abaxx Markets, discusses the downdraft in WTI and Brent crude prices since the U.S. & Iran struck the tentative peace deal,