Energy prices continue to surge due to concerns over potential supply disruptions.
Iran’s Revolutionary Guards issued a warning yesterday, stating that “no ship is allowed to pass through the Strait of Hormuz.”
However, oil prices pulled back a little from session highs following reports that the U.S. and its allies may offer military protection to vessels traveling through the Strait.
Geopolitical tensions sparked the rally, and technical levels may be less relevant during these times.
Unless the U.S. can neutralize the Iranian navy and military in the next 2 weeks, we could be facing the worst-case scenarios for energy commodities; Like the energy shock of the 1970s or the disruption following Russia’s invasion of Ukraine.
This could push oil prices into the triple digits and drive LNG prices to record highs.
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