#commodity-markets

#commodity-markets

Traffic through the Strait of Hormuz has ground to a virtual halt, unleashing the most severe energy crisis since the 1970s and threatening the global economy. The Strait is the world's most critical oil chokepoint. When it closes, it does not just affect Iran's roughly 4.6 million barrels per day of output. It threatens supply from Saudi Arabia, the UAE, Iraq, Kuwait, and Qatar combined.

The strikes on Iran by the US and Israel have sent global markets reeling, with asset classes such as stocks, bonds, and commodities ricocheting up and down after every White House update and tweet. Many funds and traders focused on macro and commodities opportunities, two of the industry's most in-demand areas coming into the year, have so far been unable to avoid losses.

DUST is a 2x daily inverse ETF designed to deliver twice the opposite of GDX's daily return. It is a short-term tactical instrument built for traders who expect gold miners to pull back, not a long-term hold. The fund launched in December 2010 and has grown to approximately $185.8 million in net assets, reflecting sustained interest in tactical gold miner hedges.

LBRT delivered a 148% EPS surprise in Q4 2025, posting $0.08 per share against a consensus estimate of -$0.17. PTEN beat by 83% on the same quarter, reporting a loss of -$0.02 versus the -$0.12 consensus. These aren't rounding errors. They signal that the street's models were built for a worse reality than the one these companies are actually living in.

US and Israeli airstrikes on Iran have prompted Iran's Revolutionary Guard to declare the Strait of Hormuz closed, a critical chokepoint for global energy flows, and the conflict has now spread across multiple countries. The paradox for investors: an energy shock lifting oil prices is simultaneously crushing the metals complex.

Both the oil and gold price were up Monday morning, as the Strait of Hormuz and safe-haven assets became the point of focus for markets. Geopolitical crises like the one unfolding currently will invariably apply upward pressure on the gold price and that's precisely what is happening this time round.

Zimbler announced his retirement, marking a significant change in Millennium's commodities unit as other senior traders have also departed amidst market instability.