Oil Markets Drop: Here's what to expect next
Oil prices have plummeted back down on the Iran/Israel cease-fire deal, along with the Federal Reserve's hinting at lowering interest rates—It's been a busy week.
Israel attacked Iran last week. Out of fears of a major disruption to the flow of oil from Iran’s own supplies, as well as the possibility of Iran shutting down the Straits of Hormuz, oil prices shot higher.
But did oil prices really shoot up?
Some 20% of the world’s oil supplies flow through the Straits of Hormuz. If there were actual fears of Iran shutting down this vital artery, oil prices would have shot up far further. Further, how far could a conflict bewteen these two nations actually last?
It was only reasonable to assume that these fears were overdone. This is why I moved on my oil trade as I did, and profited once the conflict reached its cease-fire deal.
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