💥Petroleum Chaos, Stock Market Record‼️

The geopolitical tensions in the Middle East and the uncertainties on the US-Iran front are creating the following picture in global markets:
• Divergence Between Oil and Stocks: In the past, when oil prices rose, the S&P 500 would fall, but now it has broken this relationship, reaching record levels despite oil fluctuations.
• Strait of Hormuz Critical Threshold: Markets are more focused on a "narrow" agreement that ensures the continuation of trade flows (fuel, fertilizer, plastics) rather than nuclear negotiations.
• Iran’s Resilience: Iran has a high capacity to withstand economic hardships and will prolong the process until they get the best possible concession.
• Opportunity for Europe: A potential permanent agreement and full reopening of the strait could create a significant leap for Europe's manufacturing, aerospace, and luxury consumption sectors, which are most affected by energy costs.
• Private Credit Risks: Although the share of private credits in the financial system is increasing, the fact that banks' risk in this area is less than 0.5% of total assets weakens expectations of a systemic collapse.