Middle East tensions are rising. However, oil prices are dropping. Why? The Israeli missile attacks on Iran, while not entirely unforeseen, triggered a negative response in the oil market. Now this may seem curious… contrary to expectations of a price surge due to heightened geopolitical tensions, crude oil prices plunged ~5%. In short, market sentiment tends to prioritize economic supply and demand concerns over (short-term) geopolitical risks
Oil
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Will Falling Commodities Help Drive Inflation Lower?
Commodity prices are well off their peaks. In theory, this should lead to lower CPI in coming months. But is this more an indication of a recessionary risk? I think so…