Trump administration quickly reversed its stance on using emergency oil reserves during the war against Iran, WSJ reports.
After initially telling G7 allies a release was unnecessary, Trump changed course within hours over fears of market volatility and a possible Strait of Hormuz closure.
The International Energy Agency then approved a record 400 million-barrel release, with the U.S. contributing over 100 million barrels.
Some allies were caught off guard by the sudden change but went along with it to help prevent market instability.
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Stocks May Have Topped for the 4-Year Cycle
There are signs the stock market could be approaching the top of its current 4-year cycle.
Early breakdown signals are appearing on the daily timeframe, though the weekly cycle has not confirmed a top yet, so it may still be early.
If a top forms here, the next cyclical bottom could come around October, likely resulting in a relatively mild cyclical bear phase.
Given strong AI investment and ongoing fiscal stimulus, such a pullback could simply act as a shakeout before a larger rally into 2027โ2029.
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๐บ๐ธ US JOBLESS CLAIMS 213K IN MARCH 7 WEEK; EST. 215K
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๐บ๐ธ Average US gas prices rise to $3.60 for the first time since May 2024.
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๐จ Over $500,000,000,000 has been wiped out of the US stock market at open.
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Elon Muskโs Tesla has won approval to supply electricity to households and businesses across UK.
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China and Cuba have agreed to boost bilateral ties just 6 days after President Trump said Cuba will "fall pretty soon."
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The Trump administration plans to suspend the Jones Act to help ease oil price pressures.
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๐ฅ Nvidia teams up with Palantir Technologies to build a new AI operating system.
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๐บ๐ธ US Senate votes to include banning Fed Central Bank Digital Currency in bipartisan housing bill.
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๐บ๐ธ President Trump says Fed Chair Jerome Powell should lower interest rates 'immediately' without waiting for the next FOMC meeting.
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The United States has issued a 30-day waiver allowing countries to buy Russian oil stranded at sea, aiming to ease soaring global energy prices caused by the Iran conflict and disruptions in Middle East oil shipping.
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Hormuz Chokepoint:
Could the Red Sea Serve as a Key Backup for Oil Flows?
The disruption of shipping routes through the Strait of Hormuz has raised an important strategic question: can the Red Sea serve as a partial alternative route for Gulf oil exports, thereby avoiding the threats posed by the Houthis?
Long before the current crisis, Saudi Arabia had quietly prepared for such a scenario by constructing the EastโWest Crude Oil Pipeline (Petroline) across its desert.
Today, this infrastructure is becoming crucial for global energy stability.
The pipeline enables Saudi crude to bypass Hormuz entirely and reach terminals on the Red Sea, illustrating that while Hormuz remains vital, alternative routes can mitigate the effects of disruptions.
๐พ๐ช However, the Red Sea is still within range of Iranian missiles, and if the Houthis were to enter the conflict, it would be catastrophic.
Strategic Importance of the Red Sea
โข The Red Sea connects the Indian Ocean to the Mediterranean via the Suez Canal, handling 12โ15% of global trade and essential energy flows.
โข Saudi Arabia's approximately 1,800 km coastline along the Red Seaโnearly three times longer than its Persian Gulf shoreโoffers multiple ports (such as Yanbu and Jeddah) and greater export flexibility, reducing vulnerability to disruptions at single chokepoints.
Petroline Pipeline as an Emergency Lifeline
โข Originally transporting over 1 million barrels per day (b/d) before the war, Saudi Aramcoโthe world's largest oil producerโis ramping up to its full capacity of 7 million b/d "in the next couple of days," according to CEO Amin Nasser.
โข This shift allows for the westward export of Arab Light and Extra Light grades, with Yanbu exports already tripling to around 2.2โ2.5 million b/d in early March.
โข Exports from Yanbu have surged to approximately 2.2โ2.5 million b/d, with about 20 tankers waiting offshore. Some shipments are also being routed through Egyptโs SUMED pipeline to reach Mediterranean markets.
Partial Bypass of Hormuz
โข For Saudi crude, Petroline offers a direct bypass of Hormuz.
โข The UAE's Fujairah pipeline adds limited extra capacity (about 1โ1.8 million b/d).
โข Together, these alternative routes provide approximately 3.5โ5.5 million b/d of spare capacity, helping to stabilize some exports to Asia and Europe.
โข Countries are already adapting; for example, Pakistan has shifted its imports via Yanbu, including shipments from the Pakistan National Shipping Corporation (PNSC), which recently loaded 73,000 tonnes.
But No Complete Replacement
โข The scale of Hormuz far exceeds that of alternative routes: Iran, Iraq, and Kuwait do not have comparable pipelines.๏ปฟ
โข The Houthis could resume drone and missile attacks on shipping or the Bab el-Mandeb straitโthe maritime passage separating the Horn of Africa from the Arabian Peninsulaโat any time.
โข Insurance premiums have skyrocketed, and the route remains within Iranian missile range. The nearby Logistical Support Area (LSE) Jenkins, a rapidly expanding American military base, along with a US CENTCOM logistics site, adds risks as military targets.
In strategic terms, while the Red Sea is not a substitute for Hormuz, it is increasingly becoming a vital pressure valve in the global energy system.
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๐บ๐ธ๐ฎ๐ท President Trump tells G7 leaders Iran is "about to surrender."
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โRich Dad Poor Dadโ author Robert Kiyosaki says the largest stock market crash in history may be approaching.
He believes the world will start feeling the unresolved consequences of the 2008 financial crisis in 2026.
To protect savings, he again recommends exposure to gold, silver, bitcoin and ethereum, as well as energy assets.
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Cuba recently held talks with the United States, Cuban president says.
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France and Italy are trying to jump start negotiation with Iran for the safe passage of oil and gas tankers through the Strait of Hormuz, according to FT.
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Thousands of Chinese fishing boats reportedly massing near Taiwan in the East China Sea.
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Number of job openings on the labor market (JOLTS) for January:
6.946 million
(prior: 6.452 million)
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