The International Energy Agency (IEA) says it is the 'largest supply disruption in history'. With the disruption expected to have a lasting impact on prices, governments around the world have introduced measures to limit the impact on consumers and the economy.
Ken Murphy stated, 'In terms of tax pressures, industry and energy in particular, anything the government can do to help us to keep prices low for customers is welcome.' This highlights the urgent need for government intervention to support retailers.
Gold spot prices reached $4,829 per troy ounce at the end of the week, marking a fourth consecutive weekly gain. COMEX futures closed at $4,879, up 1.48%, driven by Iran's Strait of Hormuz truce and U.S. dollar weakness.
The most senior officials from the US Federal Reserve, the European Central Bank, and the Bank of England are expected to take part in a desktop stress test to respond to another Lehman Brothers-style collapse.
The World Bank's recent report argues that government intervention, when done right, can actually be an essential ingredient of economic success, reversing decades of opposition to industrial policy.
Shipping costs have increased by more than 10 percent in the past month due to the US-Israel war on Iran. The 60-day waiver for the Jones Act aimed to lower energy costs but has had little impact on oil prices, which continue to rise amid the ongoing conflict.
Goldman Sachs now expects Brent crude to average $105 per barrel in March and $115 in April before retreating to $80 by year-end, assuming roughly six weeks of Hormuz supply disruptions.
U.S. financial markets ended the week on a cautious note as investors weighed strong employment data against growing concerns about the impact of artificial intelligence on traditional business models. Major stock indexes declined, led by technology-heavy shares, reflecting worries that rapid AI developments may disrupt established industries and earnings outlooks. The Nasdaq Composite recorded the steepest losses, while the S&P 500 and Dow Jones Industrial Average also finished lower. Value-oriented stocks continued to outperform growth stocks, extending a trend that has persisted for several weeks.
