Key Points
- Brent crude futures are trading below $100 per barrel, as President Trump says Iran wants to “work a deal.”
- However, the physical market shows signs of distress, with Forties Blend close to $149 per barrel on Monday.
- The “genie is out of the bottle,” and the Gulf states are unlikely to settle for a deal that leaves Iran with the capability to close the Strait of Hormuz.
- A US blockade of Iranian ports could escalate tensions with China.
- Lithium miners jumped on sharp increases in EV sales in Europe and other countries that saw steep increases in energy prices.
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Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.