The war has cut off access to about 20% of the world’s crude oil and another 20% of the liquefied natural gas, or LNG, that normally traverses the Strait of Hormuz that connects the Persian Gulf with the rest of the world. Oil prices are up about 50% since the war began.The market is starting to price in oil staying higher for longer. Three-month Brent crude futures rose 2% to US$100.79 a barrel. That would be the highest close since the war began—and only the second close above US $100 during the conflict.
Though the market had anticipated rates being kept steady, the major indexes fell as Fed Chair Jerome Powell discussed uncertainty surrounding the central bank’s median forecast of one interest rate cut for 2026.
Federal Reserve Chair Jerome Powell on Monday this week said the central bank is inclined to look past rising oil prices, offering his clearest guidance yet on how the Fed plans to navigate the economic fallout from the Iran conflict.
Finally,Wall Street was mainly weak throughout the month, with the major indices moving inversely to oil prices. Here, the Straits Times Index traded within a narrow band, hovering between 4,800 and 5,000 for most of the month before eventually finishing at 4,885.45 for a net loss of about 110 points or 2.2%.
What do u think the next few months of outcome in Middle East region ?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
