Miner Company
Pricing The Shock: Oil, Volatility And Portfolio Resilience
The Strait of Hormuz disruption is a classic information-rich shock, driving extreme oil volatility and forcing markets to reprice growth, inflation, and recession risk as the duration of the supply. Markets are still pricing a relatively quick resolution, but forward curves are shifting higher, suggesting oil is unlikely to revert to prior levels and that prolonged disruption would materially increase.
The Strait of Hormuz disruption is a classic information-rich shock, driving extreme oil volatility and forcing markets to reprice growth, inflation, and recession risk as the duration of the supply. Markets are still pricing a relatively quick resolution, but forward curves are shifting higher, suggesting oil is unlikely to revert to prior levels and that prolonged disruption would materially increase.