MONEY MASTER

The US-Iran peace deal has put the spotlight back on one of the world’s most critical energy chokepoints, the  Strait of Hormuz  with major implications for global markets, inflation, and trade flows. Why the Strait of Hormuz Is So Important The Strait of Hormuz is not just another shipping route: Handles  ~20% of global oil and LNG supply Key exporters: Saudi Arabia, UAE, Iraq, Qatar, Iran Majority of shipments  flow to Asia This single chokepoint is the backbone of global energy trade. War Impact: Supply Shock and Price Surge Since the conflict began: Ship traffic plunged from  ~135 to fewer than 10 vessels per day Oil producers were forced to  cut output due to storage constraints Oil prices surged due to  supply disruption fears This triggered  global inflation pressure  and market volatility. What the Peace Deal Changes The interim agreement includes: Ceasefire between US and Iran Plan to  reopen the Strait “immediately” after signi...

Market  Snapshot The  United  States  has  issued  a  30- day  sanctions  waiver  allowing  countries  to  purchase  Russian  oil  currently  stranded  at  sea ,  in  a  move  aimed  at  stabilizing  global  energy  markets  disrupted  by  the  Middle  East  conflict. The  waiver  comes  as  the  Iran  war  and  the  closure  of  the  Strait  of  Hormuz   have  severely  disrupted  global  energy  flows,  sending  oil  prices  sharply  higher  earlier  in  the  week. Following  the  announcement,  oil  prices  eased  slightly  in  Asian  trading ,  signaling  that  markets  expect  the  additional  ...

Oil  prices  jumped  back  toward  the  US$100  mark  despite  a  record  emergency  reserve  release,  as  fresh  attacks  on  cargo  ships  around  the  Strait  of  Hormuz  deepened  fears  of  prolonged  supply  disruption. Oil  Spikes  Despite  Historic  Reserve  Release Brent crude   rose 4%  to  US$95.80,  after  briefly  topping  US$101   overnight. West Texas Intermediate   climbed 4%  to  US$90.60,  having  spiked  near  US$96. The  rally  came  even  after  the  International Energy Agency   confirmed  a  record 400  million- barrel  emergency  release   by  its 32  member  nations. The  US  alone  will  release 172  million...

Iran has warned global markets to prepare for oil at  US$200 per barrel , escalating rhetoric as attacks intensify and shipping through the Strait of Hormuz remains effectively frozen. While oil prices have retreated from recent highs near US$120, Tehran’s message underscores the growing risk of a prolonged energy shock. Key Takeaways Iran warns oil could surge to US$200 per barrel Strait of Hormuz remains blocked, disrupting 20% of global oil flows 14 merchant ships reportedly struck since conflict began IEA expected to propose record 400 million-barrel reserve release Markets currently betting conflict may be contained Oil Market on Edge Iran’s military command said oil prices depend on regional security — warning the world to prepare for US$200 crude if instability persists. The Strait of Hormuz, a narrow chokepoint along Iran’s coast, normally handles: About 20% of global oil shipments A significant share of global LNG trade So far: At least 14 ships have reportedly been struck...

While global markets reel from surging oil prices triggered by the Iran war, one unlikely market is showing resilience — China. Despite being the world’s largest crude importer, Chinese stocks, bonds and the yuan have held firm, outperforming most major markets during the recent turmoil. Key Takeaways CSI 300 down just 0.3% since conflict began Yuan steady; trade-weighted RMB index hits one-year high 10-year China bond yields barely moved (+1bp) Strategic reserves and EV dominance cushion oil shock Resilience seen as tactical, not structural China vs. Global Markets Since late February: Japan: -6% South Korea: -9% India: -4% Europe: -5% US: -1.4% China (CSI 300): -0.3% China has preserved capital better than most global markets during the oil spike. The yuan has outperformed nearly all Asian currencies, while China’s 10-year government bond yield rose just 1 basis point — compared with more than 20 basis points for US Treasuries. Why China Is Holding Up 1. Energy Security Strategy For ...

Asian markets opened the week on a cautious note as  investors weigh trade risks  and a potential  global shift in oil dynamics . With the  July 9 deadline for the US “reciprocal” tariffs  fast approaching, market participants are closely monitoring signals out of Washington and trade negotiations globally. Meanwhile,  oil prices slid nearly 2% , following OPEC+’s surprise move to  accelerate production increases —a development that could disrupt bullish energy market expectations built on tight summer demand. Tariff Uncertainty: A Double-Edged Sword for Risk Assets US Commerce Secretary  Howard Lutnick  confirmed that  country-by-country tariffs are set to take effect on August 1 , stoking concerns over another wave of  disruptive trade policy . While investors hope for moderate tariffs (10–15%) to keep risk appetite intact, analysts warn that more aggressive rates (>20%) could trigger a  broad market pullback . Strategists...