Wall Street’s positive response to Saturday’s US bombing in Iran suggests that oil-rich Middle Eastern states are “unrelated” to the stock market as before, CNBC’s Jim Cramer said Monday. In fact, the Brent, the US oil benchmark West Texas intermediate and global standard, was modestly low early on Monday, with the S&P 500 getting higher. Since Israel first attacked Iran’s nuclear facilities on June 13, both crude contracts have been seen overnight, following several sessions of volatile trading. On Monday afternoon, both WTI and Brent moved on to the downside. However, Qatari forces said its air defense successfully intercepted the missile attack and no casualties were reported. The market drifted between green and red for some of Monday’s sessions, but surged high in afternoon trading as oil fell sharply. It reflects the dynamics the club has called for over the past week as the Israeli-Iran conflict escalates. Oil prices have a major impact on the stock market at such a tense geopolitical moment. @CL.1 1D Mountain WTI One Day Trading Oil Analyst Helima Croft said in an interview with CNBC that energy traders are looking for an off-ramp in conflict. In the worst-case scenario of the oil market, Iran could close the Strait of Hormuz. The Strait of Hormuz is the only way to ship crude oil from the oil-rich Persian Gulf to other parts of the globe. According to the Energy Information Administration, around 20% of global crude consumption flowed through the waterways last year. President Donald Trump said in a social media post Monday that “everyone” should keep oil prices low and otherwise “invade the hands of the enemy.” “I’m just telling myself, ‘Did nothing happen this weekend?” And I don’t think the answer is China. This is not Taiwan. “It’s not strategic. Given that it’s tactical and tactical, people just say, ‘It’s okay, let’s see how it unfolds.’ “This isn’t as relevant to our market as it could have been at one time,” Cramer said. The S&P 500 rose more than 0.7% at Monday’s session high. According to Cramer, one of the biggest reasons for the .SPX 1D Mountain S&P 500 daily measurement response is that it appears to be very different from decades ago, thanks to an increase in US oil production. At this point, it doesn’t seem like the US will see a significant oil supply shock as Cramer says there is a belief that the US has “sufficient oil.” As investors watched the Middle East, Cramer pointed to a gust of positive headlines for individual companies that lifted their shares. They included strong revenues from grocery giant Kroger, a report on the banking sector’s potential integration on Friday, as well as an upgrade of advanced microdevice from Merius Research’s chipmaker. “I just have nothing to say.”[Iran] I’m planning to throw a pole at the next company. “So I hope they find more places where Achilles heels are for the market. But it’s not a stubcoin. It’s not a merger. (For a full list of Jim Kramer’s Charitable Trust stocks, see here.) As a CNBC Investment Club subscriber with Jim Kramer, Jim receives a trade warning before making a trade. There are no disclaimers or obligations before carrying out the above Investment Club Information.
Source link
