Since hostilities began in the Middle East three weeks ago, I’ve urged investors to stay calm and resist the temptation to panic-sell. While I still stand by that advice, it’s important to point out that this conflict isn’t resolving as quickly as initially expected.
The situation has escalated, and the economic consequences are becoming clearer. We’re witnessing what I’d call a two-speed oil crisis, and understanding that split might be helpful in positioning your portfolio in the coming weeks and potentially months.
THE ‘REAL’ OIL PRICE COULD BE MUCH HIGHER
West Texas Intermediate (WTI) crude, the U.S. benchmark, topped $100 per barrel. To be sure, that’s elevated, but the spike was much worse in 2022 after Russia invaded Ukraine.
The real story is what’s happening in markets that fly under many investors’ radars. In Oman, for instance, crude reportedly hit a record $173 per barrel, surpassing even the 2008 financial
