Oil prices collapsed nearly 10% since yesterday, completely erasing their previous rally to trade comfortably right below the $90 handle.
Notably, clear signs of insider trading emerged in the Crude market just before the announcement—a continuation of the wild market craziness that has defined Trump’s second term, but certainly not a first.
Moving forward, physical traders will be closely monitoring the Strait to see if actual tanker flows resume.
The euphoria isn’t limited to traditional equities paying out big peace dividends. Cryptocurrencies caught a massive bid, with Bitcoin exploding back to life and rallying to sit just below the $80,000 (~$78,000) mark as the weekend approaches, also boosting other crypto assets.
On the macroeconomic front, the reality of the recent commodity shock is setting in. Both US CPI and PPI inflation reports rose strongly, although optimists will console as they missed their most extreme upside expectations.
However, this energy-driven jump could merely be the beginning of a much more significant inflationary wave hitting the economy over the coming months.
This week will provide fresh insights on inflation in other countries including Japan, Canada and the UK.
Now, participants are bracing for a pivotal week.
The current ceasefire officially expires on April 22 – Without a formal extension or a signed peace deal, this historic progress could vanish in a flash, throwing markets back into extreme volatility.
An actual deal will be mandatory to sustain the rally.