Stephanie Link, Chief Investment Strategist at Hightower, John Mowrey, Chief Investment Officer at NFJ Investment Group, and Marc Short, Board Chair of Advancing American Freedom, discuss oil shocks, Fed policy and market opportunities.
The war in Iran and the effective closure of the Strait of Hormuz have turned a critical artery of the global oil system into a chokepoint, driving Brent crude to a high of $106 a barrel in on March 16. Goldman Sachs now expects Brent to average above 100 dollars this month and around 85 dollars in April, warning that a prolonged disruption could echo 2008 and briefly send prices toward 150 dollars in a worst‑case scenario.
The key port of Fujairah in the United Arab Emirates was hit again on Monday. The damage from the latest strike was being assessed, people familiar with the matter said.
Oil price volatility has reached levels not seen since the pandemic as markets grapple with the fallout from US and Israeli strikes on Iran, with equity investors increasingly caught in the slipstream. Implied volatility in oil options has climbed above 100% on a one-month basis, surpassing peaks reached during the Russia-Ukraine war in 2022 and approaching levels last seen during the pandemic lockdown panic, according to Deutsche Bank strategists.
Wall Street bets on a March end to the Iran conflict — but Tehran is playing for a November U.S. regime change.
Ahead of the bell Wall Street is pointing cautiously higher. S&P 500 futures are up 0.7%, Nasdaq contracts gain 0.8%, and Dow futures add 0.5%.
Since the Iran conflict erupted, oil has seen some of the most volatile price swings on record. Ben Boulos reports from the trading floor at Onyx Capital, breaking down how traders are positioning and where they see crude heading next.
The U.S. attacked Kharg Island while a UAE trading hub was hit by drones.
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Authorities confirmed a drone strike has caused a large fire at the UAE's Fujairah Petroleum Industries area, with work underway to contain the blaze. CNBC's Dan Murphy has the latest from Dubai.
Brent crude rose to $105.88 a barrel on Monday, up 2.7%, as conflict in the Gulf entered its third week and disruption to oil shipping through the Strait of Hormuz continued to drive prices higher. The international oil benchmark has gained more than 40% since the war began, with US crude also up nearly 50% over the same period, trading just below $100 a barrel.
KB Securities' Peter Kim warns that higher oil prices stemming from the Middle East conflict are likely to hit Korea's consumption and industrial sectors immediately, while the tech sector remains relatively insulated; at least for now.