Crude oil rallies again

• Brent Crude tops $100 per barrel
• US dollar attracts safe-haven flows
• US stock markets hammered

Crude oil tops $100

Brent Crude futures have topped $100 per barrel for the second time this week, as markets weigh the possibility of a more drawn-out conflict in Iran. Regular oil shipments out of the region have yet to resume, with many tankers remaining at anchor on either side of the Strait of Hormuz. The International Energy Agency has released a record 400 million barrels to ease supply fears, but such measures have done little to ease concerns about a prolonged disruption to the oil trade. The threat of inflation is already starting to taint market sentiment and should oil prices remain too high for too long, economies around the world will eventually feel the pinch.

Markets flock to the dollar

The ongoing situation continued to lift the US dollar, pushing the greenback to fresh highs against its major competitors. The Japanese yen is fast approaching the 160 mark, a level not seen since July 2024, while the Euro is barely hanging on to $1.15, which represents a yearly low for the common currency. Safe-haven flows are strongly favouring the dollar, to the detriment of almost all else. Events in the Middle East are wreaking havoc on Wall Street, weighing heavily on the major indices. The Dow Jones shed 1.6% during Thursday’s session, while the S&P 500 and Nasdaq Composite lost 1.5% and 1.8% respectively. The ongoing confusion is doing nothing to buoy precious metals either, with gold falling the better part of $100 per ounce yesterday and silver sinking below $84 per ounce. Cryptocurrencies meanwhile are one of the few markets not currently being dragged down, with Bitcoin climbing back over $71,000 this morning. Far from being considered a safe harbour amid the surrounding chaos, given the complete lack of volume it appears as though cryptocurrencies have been forgotten entirely.