#supply-deficit

#supply-deficit

The International Energy Agency has warned of an "unprecedented supply shock" following the effective closure of the Strait of Hormuz, the narrow shipping lane that until recently carried roughly a fifth of the world's oil and gas. The destruction of energy infrastructure across the Gulf has compounded the damage, leaving traders, hauliers and manufacturers scrambling to absorb costs that were unthinkable only six months ago.

Silver hit fresh record highs on Tuesday, as safe-haven demand and bullish industrial fundamentals continued to support prices. The rally follows last week's 25 bps Federal Reserve rate cut, its first of the year, which prompted markets to fully price in nearly two more reductions by year-end. However, yesterday several Fed officials adopted a cautious tone, warning of persistent inflation and narrowing room for further easing, which could limit silver's bullish run.