10% drop, jump, weekend observation of the crude oil market

The reopening of the Straits of Hormuz on Friday triggered a general risk bias in the market: US stock markets skyrocketed, crude oil prices fell, US Treasury debt yields fell, markets believed that the worst was over, and global energy supply disruptions eased。

However, these initiatives may prove premature。

On Saturday, at 9.20 a.m., reports of two tankers being denied passage in the Strait of Hormuz were the first to break the calm. Trump then put public pressure on the United States to continue blocking Iranian ports if no agreement was reached by Wednesday. At 1600 hours on the same day, Iran announced that it had re-imposed restrictions on the Strait and opened fire on ships attempting to pass through — two Indian vessels having turned back to the Persian Gulf after being shelled, and shipping in the Strait had nearly stalled。

Traders reacted quickly on TradeXYZ, with crude oil contracts increasing by about 4.52 per cent compared to the windfall prices over the weekend, and the Standard Index contract falling by almost 0.8 per cent。

Trump then changed his posture and revealed that the Special Envoy, Steve Witkoff, would travel to Pakistan on Tuesday for talks with the Iraqi side, the negotiating window or until Wednesday。

Turning over, Trump wrote in the South Social, saying, "The agreement we have offered is very fair and fair, and I hope they accept it because if they do not, the United States will destroy every power plant and every bridge in Iran."

It is clear that Iran does not like this. At 1:53 a.m. on 20 a.m., the Iraqi side announced its refusal to participate in the second round of negotiations; according to Axios, Tehran judged that the United States might launch an attack before the end of the ceasefire on Tuesday night。

As a result of this information, the crude oil rose again, clearing the 18-day high point, which corresponded to the 18-day low of the Standard Index。

On the one hand, the three encryption units performed significantly behind the others。

It is foreseeable that the spread of optimism in the market last week will be punished. Much of the market movement this week will depend on Iran ' s maintaining a non-negotiable attitude。

Source: Weekendmarkets.xyz