US military carries out new strikes on an Iranian military site — Reuters

💡 DMK Insight

Tensions in the Strait of Hormuz just escalated, and here’s why that matters for traders: The recent US military strikes in Iran could disrupt oil supply routes, impacting crude prices significantly. With the Strait of Hormuz being a critical chokepoint for global oil shipments, any escalation in military action can lead to a spike in volatility. Traders should keep an eye on WTI and Brent crude futures, as a sustained increase in tensions could push prices above key resistance levels. Additionally, the geopolitical climate may influence currency pairs like USD/IRR and USD/BRL, as investors seek safe havens or react to shifts in oil prices. But here’s the flip side: if this situation de-escalates quickly, we might see a rebound in risk appetite, leading to a potential sell-off in safe-haven assets like gold. Watch for any statements from the US or Iranian officials that could signal a change in the current trajectory. The next few days are crucial, so keep your charts open and monitor for any breakout patterns in oil and related currencies.