Crude Oil Climbs Again as Markets Watch Strait of Hormuz

Amid reports that the US is attempting to prevent Iran from laying mines in the Strait of Hormuz to block shipping, a sign that the conflict may not be over yet, the price of Crude Oil has started to rebound from yesterday’s selloff. US Crude and Brent Crude are up 3.9% to 4.1% respectively this morning, trading near $87.00/bbl and $91.00/bbl.

This trading action reminds investors that even though Monday’s spike was short-lived, Crude Oil appears to be settling into a higher trading range than it held before the conflict began. There have also been reports that Japan and the International Energy Agency may be preparing to release oil from strategic reserves, which could influence pricing.

Wednesday finds global equities mixed. US index futures are flat so far. Overseas, the Nikkei gained 1.4% overnight, while the DAX has dropped 1.3% and the FTSE has fallen 0.7%. Copper is down 1.8%, which may suggest concern that the conflict could impact global resource demand.

Setting aside the pre-conflict US consumer price report, which had little market impact, the US Dollar is climbing again today against most currencies. The Loonie and Pound are steady, while the Euro is down 0.2% and the Yen is down 0.3%. Gold is down 1.1%, Silver is down 3.7%, and Bitcoin is down 1.2%.

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