Oil Again Becomes the Main Subject on the Chain｜TradeXYZ Weekend Watch
Tensions surrounding the Iran-US ceasefire memorandum and the Strait of Hormuz drove volatile market movements over the weekend of June 19-22. Despite an initial announcement of a deal, friction escalated when Israel continued airstrikes in Lebanon, prompting Iran to threaten closing the strait. This pushed crude oil prices to a peak near $79. Subsequent aggressive rhetoric from Trump, including threats to potentially take control of the strait, added to volatility. However, by June 22, negotiations in Switzerland showed progress, with Iran indicating it would not block the strait for 60 days, causing oil prices to retreat nearly 6% from their highs.
US stock indices traded flat to slightly lower, with minor declines in major tech and growth stocks. In commodities, gold and silver gained, supported by falling yields and a weaker dollar amid receding inflation fears rather than traditional safe-haven demand. Natural gas prices rose (+2.51%) following an explosion at a key Qatari LNG facility, though this was partially offset by signals that Qatari LNG shipments were preparing to resume. Overall, geopolitical developments in the Middle East remained the primary driver for oil and related asset prices.
marsbit06/22 11:01
