WATCH ON YOUTUBE Global markets were jolted this week after escalating conflict in the Middle East disrupted flows through the Strait of Hormuz, the critical shipping lane that carries around 20% of global oil and LNG supply. Key Market Moves WTI crude surged from ~$72 to above $109 in just six trading sessions Brent crude moved back above $100 for the first time since 2022 The International Energy Agency described the event as the largest oil supply disruption in modern market history, impacting ~7.5% of global supply Market Reaction Markets struggled to hedge the shock: Stocks and bonds both fell Gold underperformed as a traditional safe haven Energy assets surged Inflation-linked bonds (TIPS) outperformed The Bigger Macro Risk: Stagflation The combination of rising energy prices and weakening economic momentum is reviving fears of stagflation — a mix of: Rising inflation Slowing growth Policy challenges for central banks What Investors Are Watching Key questions for markets: Will the Hormuz disruption persist? How high could oil prices go? How will central banks respond to the inflation shock? Goldman Sachs has warned Brent could exceed $147/bbl if supply disruptions persist. Investment Takeaway The current shock highlights a shift in market leadership: Energy producers → strongest beneficiaries Inflation hedges → gaining attention Growth-sensitive commodities → under pressure
