CRU: Energy, metals and fertilizers spike as war engulfs Middle East

This news item was first published by CRU. To learn about CRU’s global commodities research and analysis services, visit www.crugroup.com.

Crude-oil and natural-gas prices spiked, metals opened higher and some fertilizer benchmarks climbed after the US and Israel launched a “pre-emptive” strike on Iran, killing the supreme leader and plunging the region into chaos.
 
Traffic via the Strait of Hormuz carrying crude and liquefied natural gas (LNG) dropped 86% from February 28 to March 1, according to Lloyd’s List Intelligence. Three vessels were struck by projectiles since the conflict began over the weekend, the UK Maritime Trade Operations said. While there is currently no formal blockade of the strait, Iran has warned vessels to stay away. Shipowners are waiting for more information before navigating the narrow waterway – the route for 20% of the world’s oil and similar proportion of global LNG.