Oil prices such as United States Brent Oil Fund (NYSE: BNO) and the United States Oil Fund (NYSE: USO) are trading lower Tuesday. The selloff follows news that a tentative ceasefire between Israel and Iran may be in effect, reducing immediate concerns over further military escalation in the oil-rich Middle East region.
Middle East conflict boosts demand for 'crisis alpha' ETFs in defense, energy, inflation, and cybersecurity sectors, as investors fear market volatility.
Asian stock markets presented a mixed picture on Thursday, suggesting investor caution quickly returned following a significant relief rally on Wall Street.
Risk assets staged a recovery yesterday amid growing hopes for a de-escalation in US-China trade tensions. President Trump also eased concerns he might fire Federal Reserve Chair Powell.
Brent rose above $67 on Thursday, extending gains for a second session, after new US sanctions on Iran's oil sector and a Chinese refinery heightened supply concerns.
The cartel now anticipates a demand increase of 1.3 million barrels per day (bpd) for 2025, down 150,000 bpd from its previous projection. Similarly, the 2026 forecast has been adjusted downward to 1.28 million bpd.
Trump surprised markets with a 90-day pause in reciprocal tariffs for most trading partners. This provided a boost to risk assets, including commodities. However, there’s still plenty of uncertainty as the US again increased tariffs on China.
