#Gate广场五月交易分享

Breaking! Oil prices collapse, Iran ensures safe navigation through the Strait of Hormuz
The situation in the Middle East has been truly unpredictable these days, causing turbulence in the global financial markets. Just now, WTI crude oil prices plummeted 11%, dropping from $102 to currently $90.6. The reason is that the Iranian Islamic Revolutionary Guard Corps Navy issued a statement saying, “With the threat of aggressors eliminated, new regulations have taken effect. We will ensure the safe and stable passage of ships through the Strait of Hormuz.” This means the Strait of Hormuz, which has been closed for two months, is about to fully reopen, allowing stable exports of Middle Eastern oil. The foundation for high oil prices is gone, and the oil bulls’ sky is falling!
Bullish for gold and Bitcoin, bearish for crude oil
As mentioned above, free navigation means the foundation for high oil prices is gone, which is bearish for oil. Meanwhile, a sharp drop in oil prices will reduce global inflation expectations, thereby decreasing the likelihood of interest rate hikes by central banks worldwide. Global funds, especially US liquidity, will improve, benefiting commodities, gold, and Bitcoin. Currently, oil has already fallen 11%, and attention can be paid to the support at the $85 mark; gold has surged 3% to $4,710, with a key focus on whether the $4,800 resistance level will be broken in the future.
Follow-up focus—whether the promise can be smoothly implemented
Since the US-Iran conflict, the Strait of Hormuz has opened and closed multiple times. This is not the first time, but the reason why this time’s impact on oil prices is so significant is mainly because the announcement came from the Islamic Revolutionary Guard Corps, which is known to be the most hardline faction within Iran. An announcement from them about navigation suggests that different factions within Iran may have unified their opinions, and the promise is likely to be executed. However, it cannot be ruled out that Iran might manipulate oil prices for profit in financial markets again. Therefore, the key point now is to watch when the first oil tanker will safely pass through the Strait of Hormuz.
Operational suggestion—light positions to buy oil before the agreement is implemented
Given the current collapse in oil prices, it is obviously not advisable to chase short positions. Since there is still a possibility of fluctuations before Iran’s promise to open the strait is fully implemented, you can lightly buy oil to speculate on whether news could change and trigger a rebound. The stop-loss can be set at the $85 support level. That’s all for now. Wishing everyone daily prosperity!