Saudi Arabia has temporarily shut its East–West oil pipeline following drone attacks. The route recently carried 4–5 million barrels per day—roughly 4–5% of global supply.
Meanwhile, Houthi forces have taken Perim Island at the entrance to the Bab el-Mandeb Strait, adding risk to another critical energy-shipping corridor.
Brent settled Friday at $104.61, down 2.81% on the day but still more than 8% higher for the week.
Market scenarios: • Oil: upside reopening risk — high confidence. • Gold and USD: defensive support, offset by higher yields — medium confidence. • Stocks and crypto: higher volatility and conditional risk-off pressure — medium confidence.
Next catalysts: pipeline restart timing, Bab el-Mandeb traffic, retaliation or diplomacy, and the Sep 15–16 Fed meeting.
Sources: Reuters and AP. Information only, not investment advice.
Ahead of the September 16 FOMC decision, the CME FedWatch snapshot shows:
• 87.3%: 25bp hike to 3.75–4.00% • 12.7%: Hold at 3.50–3.75%
This is futures-implied market pricing—not an official Fed forecast. The shift follows August CPI rising 0.4% MoM and 3.4% YoY, while core CPI increased 0.3% MoM. Payrolls rose by 162K and unemployment held at 4.1%, giving the Fed more room to fight inflation.
📊 Market scenarios:
• Hike + hawkish outlook: Higher yields and stronger DXY; pressure on Gold and BTC. • Hike + pause signal: Initial volatility, but DXY gains may fade while Gold and BTC recover. • No hike: A dovish surprise—likely negative for DXY and supportive for Gold and BTC.
With a hike largely priced in, the Fed’s projections and future rate path may move markets more than the decision itself.