TMAD Commodities: Oil Rebounds Amid Renewed Tensions
$USO $URA $GLD $SLV
Hello Traders,
The fragile peace in the Strait of Hormuz has collapsed. Following Iran’s attempt to forcibly dictate shipping routes, they have launched targeted missile and drone attacks against commercial tankers and U.S. naval assets.
Tehran is clearly testing the limits of the June ceasefire to prove it still dictates the flow of traffic in the region. The U.S. has responded with significant strikes against Iranian maritime infrastructure, and with President Trump declaring the previous truce 'over,' the threat of a full-scale return to hostilities is once again at the forefront of global markets
Metals are back in the firing line. The collapse of the Strait of Hormuz ceasefire has reignited inflation fears and cemented expectations for a hawkish Fed, driving a aggressive exodus from the sector. As I’ve cautioned, traders are aggressively hedging the downside, prioritizing the dollar and yields over non-yielding assets.
