Strait of Hormuz

Monday on the London Stock Exchange: An Anxious Start to the Week

The first trading day of the week began with a noticeable decline in the British market. The FTSE 100 had fallen by 0.61% by the middle of the trading session, reflecting a broader deterioration in sentiment across European markets. Investors are fleeing risk, and they have good reasons to do so.

The conflict in the Middle East has entered a new and more dangerous phase. For the ninth consecutive night, the US military has carried out strikes against Iranian targets. These are no longer isolated operations but a systematic effort to suppress Iran’s military capabilities. Tehran’s response is becoming increasingly aggressive and is spreading to neighbouring countries in the Persian Gulf.

Germany’s DAX lost 0.16%, while France’s CAC 40 declined by 0.05%. However, the British market proved to be the most vulnerable. The reason is the United Kingdom’s dependence on imported energy and the sensitivity of its economy to rising oil prices. As the market is currently demonstrating, oil prices are climbing rapidly.

The Pound Sterling: A Small Island of Stability

Against the backdrop of a falling stock market, the pound sterling has remained relatively resilient. The British currency rose by 0.08% to $1.3466. This modest but symbolic appreciation suggests that investors still have confidence in the British economy despite the external shocks.

The focus is now on the UK political landscape. Andy Burnham is expected to formally take office as prime minister on Monday, and his promise to give households “breathing space” from the rising cost of living has resonated with voters. However, the extent to which this promise can be implemented in practice remains an open question.

Burnham’s position on North Sea oil production is attracting particular attention. US President Donald Trump has already welcomed plans...

Monday in the Commodity Market: Oil Jumps 3%

The first day of the week began with a powerful surge in the oil market. Brent BZUSD ... crude futures jumped 3%, breaking through the psychologically important level of $90 per barrel and reaching $90.75. This was their highest level in more than five weeks. US West Texas Intermediate crude was not far behind, gaining 2.5% to reach $83.85 per barrel.

The reason for such a sharp move was not technical factors or inventory data, but the escalation of the military conflict between the United States and Iran, which entered a new and more dangerous phase over the weekend.

The conflict in the Middle East has already been underway for several weeks, but the events of the past weekend marked a turning point. The United States Central Command, or CENTCOM, confirmed that it carried out new strikes against Iranian targets on Sunday evening.

This was not simply another military operation. It was a response to an Iranian attack on a US base in Jordan that killed at least two American service members and injured many others. For the United States, this represented the crossing of a red line, and the response came quickly.

The most alarming development, however, is not the individual strikes themselves, but their geographical scope and intensity. According to reports, the US military is attacking a broader range of targets inside Iran rather than limiting its operations to border areas. Iran, in turn, has intensified its attacks on neighbouring Gulf states.

The conflict is no longer localised and is beginning to spread across the entire region.

The Strait of Hormuz: A Vital Artery Under Threat

The Strait of Hormuz remains at the centre of the military confrontation. It is a strategically important waterway through which approximately 30% of the world’s...

Introduction: The Calm Before the Storm or the Quiet After It?

Thursday’s trading session in Asian currency markets was surprisingly subdued. Most regional currencies remained confined to narrow trading ranges, as though bracing themselves for an inevitable shock. The weakening of the US dollar, which would normally provide support to Asian assets, was completely offset by increasingly troubling geopolitical developments. Investors who were ready to embrace risk only yesterday have now adopted a wait-and-see approach—and they have compelling reasons to do so.

The Middle East is once again at the center of global attention, and this time the situation appears far more serious than another escalation in rhetoric. For the fifth consecutive day, the US military has carried out strikes against Iranian targets. The Pentagon has not commented on the details of the operations, but regional sources indicate that the attacks are specifically targeting Iran’s military infrastructure.

Tehran, meanwhile, has responded with increasingly forceful statements, and the Strait of Hormuz has become the central subject of every discussion. Iranian officials have once again emphasized that control over this strategic route is not merely a matter of economic advantage but a cornerstone of national security. For financial markets, this sounds like a warning: disruptions to energy supplies are no longer a purely hypothetical threat but an increasingly realistic scenario.

Against this backdrop, the US dollar is struggling to find firm ground. The weakness of the American currency no longer appears to be a temporary correction. Inflation data released the previous day came in below expectations, and markets are now almost unanimous in expecting the Federal Reserve to leave interest rates unchanged at its next meeting.

The US Dollar Index has stabilized near 100.5, hovering close to its monthly lows. However, rather than celebrating the weaker dollar, Asian investors are choosing to...

Introduction: The Third Wave of Growth

Wednesday morning brought fresh momentum to the oil market. August-delivery WTI crude oil futures rose by 1.08%, reaching $80.20 per barrel. Brent crude, meanwhile, gained 1.39% and settled at $85.91 per barrel. This move continues the rally that began last week and accelerated following the reinstatement of the blockade in the Strait of Hormuz.

What is driving the market now? Geopolitical tensions in the Middle East, a weaker US dollar, and technical factors are all working in favor of the bulls. WTI ... crude has broken through the psychologically important level of $80 per barrel, opening the door to new potential targets.

In this article, we will examine the reasons behind the current rise, the key technical levels, and the prospects for the oil market over the coming days.

Geopolitical Factors: The Strait of Hormuz Blockade Continues to Put Pressure on the Market

The Reinstatement of the Blockade and Rising Oil Prices

The reinstatement of the Strait of Hormuz blockade remains the main geopolitical factor supporting oil prices. The United States announced the restoration of its naval blockade of Iran and the introduction of a transit fee for vessels passing through the strait, raising concerns about potential supply disruptions.

Iran has not remained on the sidelines. Tehran has launched drone strikes against US facilities and targeted vessels in the region with cruise missiles. The escalation is continuing, and markets are pricing in the risk of serious supply disruptions.

The Role of the Strait of Hormuz

The Strait of Hormuz is a narrow maritime corridor through which approximately 20% of the world’s oil passes. Any threat to this region causes anxiety in the markets and pushes prices higher.

Even without actual supply disruptions, the threat of them creates speculative momentum. Traders buy oil to hedge against...

Introduction: The Calm Before the Storm

Tuesday was a day of cautious optimism for the British pound EURGBP ... and the euro. Both currencies posted modest gains as markets paused to reassess the pace of the US dollar’s appreciation. Geopolitical tensions in the Persian Gulf continue to support demand for the American currency, but investors are reluctant to make sharp moves ahead of key US inflation data.

The pound sterling rose to $1.3375, gaining 0.20%. The euro strengthened to $1.1395, adding 0.13%. These are modest moves, but they reflect an important shift in market sentiment: the dollar, which has dominated the markets in recent weeks, is beginning to lose momentum.

However, pressure from the dollar remains the dominant force. The renewed blockade of the Strait of Hormuz pushed Brent crude oil to $84 per barrel, providing additional support for the US currency. In this article, we will examine all the factors affecting the pound and the euro, assess their prospects, and attempt to determine where these currencies may move in the coming days.

The Pound: Modest Growth Driven by Broader Dollar Dynamics

A 0.20% Increase

The pound sterling rose to $1.3375, gaining 0.20%. This was a relatively small increase, but it occurred against the backdrop of a broader weakening of the dollar ahead of the release of inflation data.

The pound’s advance was driven by general US dollar dynamics rather than any factors specific to the United Kingdom. British political and economic developments had almost no impact on Tuesday’s trading.

Lack of Domestic Drivers

No significant UK economic data were published on Tuesday, and there were no notable comments from Bank of England officials. The pound moved primarily in line with broader US dollar trends.

This means that any movements in the pound over the coming days will depend on external...

Introduction: Shocking Figures and Hope That Refuses to Die

The second quarter of 2026 became a period of severe challenges for the Swedish energy technology company Climeon. Sales amounted to just SEK 0.4 million, while the value of new orders received during the period was zero. For a company developing advanced heat recovery technologies, such results may appear to be a death sentence.

However, it would be premature to draw conclusions. Behind these figures lies a more complex picture. The adjusted loss per share decreased from SEK 0.52 to SEK 0.36 compared with the same period last year. This indicates that the company is becoming more efficient despite the decline in sales.

Climeon delivered its first HeatPower 300 system to China, completed a supplementary share issue worth SEK 23 million, and reported a record number of industrial sales opportunities in Europe. In this article, we will examine every aspect of the current situation, assess the company’s prospects, and attempt to understand where this Swedish business is heading.

Financial Performance: A Hell’s Kitchen of Losses

Sales of SEK 0.4 Million

Sales of SEK 0.4 million represent a catastrophically low figure for a technology company with global ambitions. It means that over a three-month period, the company generated almost no revenue from its core operations.

What caused such a decline? It was most likely a combination of several factors: delays in project implementation, difficulties bringing new products to market, and a broader slowdown in the energy technology sector.

Zero New Orders

The absence of new orders in the second quarter is an alarming signal. It suggests that customers either do not see an urgent need for Climeon’s technologies, prefer competing solutions, or are simply postponing investment decisions amid global uncertainty.

This is particularly concerning against the backdrop of a record number of...

Introduction: An Escalation That Changes the Rules of the Game

Tuesday began with a new round of escalation in the oil markets. President Donald Trump announced the reinstatement of a naval blockade against Iran and the introduction of a 20 percent transit fee on cargo passing through the Strait of Hormuz. Oil prices reacted immediately: Brent crude rose 2.1 percent to $85.01 per barrel, while WTI gained 2.1 percent to $79.78.

However, this was merely a continuation of the rally that began on Monday, when both global benchmark grades jumped by nearly 10 percent—their largest one-day increase in several months. Tensions between the United States and Iran have reached a new level, and markets are pricing in the risk of serious disruptions to oil supplies from the Persian Gulf.

What is behind this decision? What are the consequences for the global economy? And where will prices move next? In this article, we examine every aspect of the current crisis and its impact on the oil markets.

The Blockade of Iran: Trump’s Decisive Move

The Reinstatement of the Naval Blockade

President Trump stated that the United States would reinstate its naval blockade of Iran following the resumption of military clashes with Tehran. The decision came in response to Iranian drone strikes on US facilities in Kuwait and attacks on vessels in the Strait of Hormuz.

The US Armed Forces will begin enforcing the blockade on Tuesday, targeting vessels linked to Iran. Neutral commercial vessels will still be permitted to pass through the strait. This is an important distinction, demonstrating that the United States is attempting to restrict Iranian shipments rather than completely shut down maritime traffic.

A 20 Percent Transit Fee

Trump also announced that Washington would charge a 20 percent fee on cargo passing through the Strait of Hormuz to...

Introduction: Tuesday Brings Another Wave of Growth

Asian trading on Tuesday was marked by another surge in oil prices. August West Texas Intermediate crude oil futures rose by 2.07%, reaching $79.76 per barrel. Brent crude gained 1.66%, settling at $84.68 per barrel. This continued the rally that began last week, when prices jumped by more than 3% in a single day amid an escalation of the conflict between the United States and Iran.

What is currently driving the market? Geopolitical tensions in the Middle East, concerns about supply disruptions through the Strait of Hormuz, and a weaker US dollar are all working in favor of oil bulls. However, there are also reasons for caution: technical levels indicate that oil has approached a resistance zone, and a breakout above $80 per barrel could open the way to new highs.

In this article, we will examine the reasons behind the current rally, key technical levels, and the outlook for the oil market in the coming days.

Geopolitical Factors: Iran Returns to the Center of Attention

Conflict Escalation and Threats to the Strait of Hormuz

The renewed military conflict between the United States and Iran continues to dominate the oil market. Last week, Tehran announced the closure of the Strait of Hormuz after a commercial vessel was attacked. Although the United States disputed this statement, claiming that shipping routes remained open under the protection of the US Armed Forces, markets had already begun pricing in the risk of serious supply disruptions.

On Tuesday, President Trump said that the United States would restore its naval blockade of Iran and ensure that the Strait of Hormuz remained open. On the one hand, this statement demonstrates US determination. On the other hand, it highlights the fragility of the situation. Any further escalation could lead to actual...

Introduction: Geopolitics Takes Precedence Over Domestic Politics

Monday became a day on the foreign exchange markets when geopolitics outweighed everything else. The pound sterling weakened despite the remarkably orderly transition of power taking place in the United Kingdom. The reason was a sharp rise in energy prices caused by renewed US strikes on Iran and concerns about shipping through the Strait of Hormuz.

Investors turned to the dollar as a safe-haven asset, and this pressure proved stronger than the domestic factors affecting the British economy. GBP/USD declined by 0.11% to 1.3392, retreating from last week’s highs. The euro, by contrast, posted a modest gain, although analysts warn that the single currency’s vulnerability may become more apparent in the coming days.

What is driving this movement? Why is the energy shock having such a strong impact on the pound? And what should investors expect this week, with inflation data, congressional hearings, and the continuing Middle East crisis on the agenda?

The Dollar as a Beneficiary of the Energy Shock

US Energy Independence

Chris Turner of ING clearly identified the main reason behind the dollar’s strengthening: US energy independence. Unlike Europe and the United Kingdom, which depend on energy imports, the United States is capable of meeting its needs using its own resources.

If Iran effectively blocks the Strait of Hormuz, it will create serious problems for oil-importing countries. For the United States, however, it could become an advantage. Rising energy prices would encourage American producers to increase output, while exports of more expensive oil would generate additional revenue.

As a result, the dollar receives support not only as a safe-haven asset but also as the currency of an energy-exporting country that benefits from higher oil prices.

Demand for High-Yielding Currencies

Turner also notes that low volatility in the foreign exchange market...

Introduction: Monday’s Sell-Off

Monday morning brought an unpleasant surprise for gold investors. Precious metal prices continued to decline, and the drop was substantial. XAU/USD fell by 1.5% to $4,057 per ounce, while gold futures lost 1.17%, slipping to $4,065. Silver and platinum suffered even heavier losses: silver plunged by nearly 3%, while platinum fell by 1.6%.

What happened? Why is gold, traditionally considered a safe-haven asset, falling at a time when geopolitical tensions are reaching their peak? As is often the case, the answer lies in a complex combination of factors, with rising oil prices and inflation expectations outweighing demand for safety.

The resumption of hostilities between the United States and Iran, the threat of the Strait of Hormuz being closed, and the surge in oil prices above $78 per barrel have created a perfect storm for the gold market. Investors are not so much afraid of the war itself as they are of its consequences: accelerating inflation and, as a result, tighter monetary policy from the Federal Reserve. For gold, which generates no income, higher interest rates can be a fatal blow.

Geopolitical Shock: Iran, the United States, and the Strait of Hormuz

Escalation of the Conflict: From Words to Action

The weekend marked the point at which diplomatic efforts finally reached a dead end. The United States launched another round of strikes against Iranian targets following an attack on a Cyprus-flagged cargo vessel in the Strait of Hormuz. Tehran responded swiftly by announcing the closure of the key shipping route until further notice.

Although US officials disputed the announcement and emphasized that the waterway remained open under the protection of the US armed forces, markets had already begun pricing in the worst-case scenario. Shipping activity in the region declined sharply, and even if the strait technically remains open,...