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Week 18: Tit-for-Tat in the Strait. Iran Seizes Two, Trump Tells Navy to Shoot Mine-Layers

Weekly Briefing · Week 18 · Hormuz Blockade Day 58
Naval Standoff · 1.5 / 10

Trump extended the ceasefire on Tuesday. By Wednesday morning, the IRGC had seized two foreign-flagged container ships (the Panama-flagged MSC Francesca and the Liberia-flagged Greek-owned Epaminondas) and damaged a third with gunfire and RPGs off the Omani coast. Thursday, Trump ordered the US Navy to "shoot and kill" any boats laying mines in the strait. By Friday, Goldman was describing the path forward as "maritime trench warfare to a sloppy peace." Oil reversed back up. WTI from $89 to $96, Brent through $101. But gold sold off, copper stalled, and the dollar firmed for the first time in a month. The market is pricing this as chronic, not acute. Wednesday's FOMC at 99.9% hold consensus is the macro pivot of the week.

Last Week's Calls · Scorecard
What we said in W17 · How it played
W17 · Oil
"If Tehran returns to Pakistan within the week, Brent holds $90–100. If Iranian forces retaliate against a US-flagged vessel, the floor breaks down fast." Iran retaliated against two non-US vessels, threading the needle. Brent moved to $101, exactly inside the called range, then through it on Wednesday's seizures.
Right
W17 · Freight
"Expect the next WCI assessment to reverse direction" after the brief mid-week thaw closed with the Touska seizure. WCI continued lower. Global composite −2% to ~$1,806/FEU. We expected a reversal up; instead, transpac softness pulled the index down a second consecutive week.
Wrong
W17 · DXY
"If Pakistan reboots talks and DXY reclaims 99, the structural thesis weakens. If DXY slips below 97 and gold tags $4,900, it hardens." Pakistan reboot partially happened (ceasefire extended Tue, Iran sabotaged Wed). DXY held in the 98.0–98.8 range. Neither trigger fired. The thesis is on its third week of unresolved.
Open
W17 · Crypto
"If ETH outperformance continues next week despite geopolitical noise, it is a confirmation signal for the broader structural thesis." ETH did NOT confirm. Flat at ~$2,323 while BTC pushed to $78K. Rotation hint did not extend. Structural thesis a touch weaker on this read.
Partial
Direction & Timing
Oil
~$96 WTI, $101 Brent.
+7% on retaliation
Metals
Gold −2% off the highs.
Copper stalls at $6.08
Currencies
DXY firms to 98.3.
First weekly gain in a month
Freight
WCI $1,806 (−2%).
2nd straight weekly drop

This week's defining variable: Wednesday's FOMC at 2 PM ET. A hold is priced at 99.9%. The message in Powell's presser is what matters. If he flags energy-driven CPI risk explicitly, the cut path for 2026 narrows further and DXY firms above 99. If he stays generic on "data-dependent," DXY rolls back over and gold bounces.

Stability
1.5
Tit-for-tat seizures
Cost Pressure
3.2
Oil bounced. Gas surge in retail.
Crisis Score
90 / 100
Down 2 from 92. Chronic vs acute.
Blockade
Day 58
Both sides active
Price Reference Table
Higher
Lower
Flat / mixed
MaterialPriceWoW8-WeekNote
WTI Crude~$96.13/bbl+7.3%+47%Bounced through Touska aftermath. Yahoo close Apr 27.
Brent Crude~$101.42/bbl+6.2%+48%Broke back above $100 on Wed seizures. Yahoo Apr 27.
Diesel~$5.45/gal+1%+41%EIA April STEO. Crack spreads widened with crude bounce EST
Gasoline~$4.32/gal+2%+39%Retail Sales gas receipts +15.5% MoM (Mar). West Coast above $5.80
Natural Gas~$2.81/MMBtu+4.3%−10%Bounced off shoulder-season low. NYMEX close Apr 27.
Gold~$4,708/oz−2.1%−4%Sold off into the bounce in oil. Off cycle highs.
Copper (COMEX)~$6.08/lb+0.7%+22%Stalled at the highs. Grasberg still offline.
Aluminum~$2.50/lbflat+34%Tariff floor anchored EST
Steel (CRC)~$1,150/s.tonflat+108%Tariff + domestic demand. CRU baseline ~$1,144 EST
Dollar (DXY)~98.29+0.2%−9%First weekly gain in a month. Held the 98 floor.
Mex. Peso~17.40/USDflat+0.4%In a 17.2–17.5 range EST
British Pound~$1.341−0.3%+5%Pulled back as DXY firmed
Euro~$1.176−0.4%+3%Below $1.18. Bearish engulfing follow-through
Container Freight$1,806/40ft−2%−10%Drewry WCI global composite. Transpac led decline.
Trucking (van)~$2.52/mile+0.4%+25% YoYDAT March data still latest. April release imminent.
Bitcoin~$78,029+2.2%+19%Cleared the W17 $76K range. Yahoo Apr 26 close.
Ethereum~$2,323−0.2%+16%Rotation hint did not extend. Yahoo Apr 26.
Solana~$84.88−1.3%+5%Lagged BTC. F&G Index back into Neutral (47).

Sources: Yahoo Finance (intraday Apr 27), Drewry WCI (Apr 24), EIA April STEO, CME, Federal Reserve. WoW = week-over-week vs Apr 20 close. 8-Week = since pre-crisis baseline (Mar 2 print).

Top Movers · Week 18 vs Week 17

The W18 tape is a clean rotation. Tactical assets up, structural assets down. Oil reversed sharply higher on the IRGC seizures; copper paused at the highs; gold pulled back from the cycle high; the dollar firmed for the first time since the crisis began. When peace headlines hit in W17, the structural assets (gold, dollar) didn't move with the tactical assets (oil); that was the divergence. This week, the tactical and structural moved in opposite directions again, but in reverse. Oil up, gold down. The interpretation: the market has priced the crisis at a floor and is trading the noise.

▲ Up This Week
WTI Crude
+7.3%
Bounced through Touska aftermath. Brent broke back above $100 on Wed seizures.+47% 8w
Brent Crude
+6.2%
Cleared $100 again as IRGC retaliated. Goldman now sees $90–$110 range.+48% 8w
Natural Gas
+4.3%
Bounced off shoulder-season low. Pulled with crude on energy bid.−10% 8w
Bitcoin
+2.2%
Cleared the W17 $76K cap. Fresh cycle high at $78K.+19% 8w
Diesel EST
+1.0%
Crack spreads widened with the crude bounce. EIA April STEO baseline.+41% 8w
▼ Down This Week
Gold
−2.1%
Sold $99/oz off the cycle high. Couldn't bid back even on Wed seizures.−4% 8w
Container (WCI)
−2.0%
2nd straight weekly drop. Transpac led: Shanghai-NY −6%, LA −4%.−10% 8w
Euro
−0.4%
Below $1.18. Bearish engulfing pattern from W17 confirmed.+3% 8w
British Pound
−0.3%
Pulled back as DXY firmed for the first time in a month.+5% 8w
Solana
−1.3%
Lagged BTC's run. Apr 26 close $84.88 vs Apr 20 $86.03.+5% 8w
Ethereum
−0.2%
Rotation hint did not extend. Stayed flat while BTC made highs.+16% 8w

The signature move this week: oil and gold went the opposite direction within the same five sessions, while DXY had its first weekly gain in a month and BTC printed a fresh cycle high. That is what a market looks like when it has stopped re-rating the crisis and started trading inside the new range. The escalation premium is now embedded in price levels, not in volatility.

Material Breakdown
Oil & Energy ↑ WTI ~$96, Brent ~$101
TL;DROil reversed +7% on the IRGC ship seizures. The peace-rally drawdown is fully recovered. Goldman now sees a "sloppy peace" range, not a clean resolution.
WTI Crude ~$96.13/barrel Brent ~$101.42/barrel Diesel ~$5.45/gallon EST Gasoline ~$4.32/gallon EST Natural Gas $2.81/MMBtu
+$6.52
WTI added $6.52/bbl this week, fully recovering the peace-rally drawdown. Brent broke back above $100 on Wednesday morning as the seizure tape hit. The $90 floor we wrote about last week held cleanly. Buyers stepped in inside two sessions. Goldman's Friday note reframed the path as "maritime trench warfare to a sloppy peace": not a clean resolution and not an escalation to $150 either, but a $90–$110 grinding range with periodic spike risk.
52-week low72nd percentile (52-week high $124.61, Apr 16)

What happened: The week split clean into two halves, the mirror of W17. Tuesday Apr 21: Trump publicly extended the ceasefire to allow continued talks. Oil traded in a narrow $90–93 band. Wednesday Apr 22: The IRGC seized the Panama-flagged container ship MSC Francesca and the Liberia-flagged, Greek-owned Epaminondas in the Strait of Hormuz; an Iranian gunboat opened with gunfire and RPGs on the Epaminondas off the Omani coast. Crude jumped $4 inside an hour. Thursday: Trump told the Navy to "shoot and kill" any boats laying mines. Three vessels had been attacked in 48 hours. Friday-Sunday: The world's top container lines confirmed they would still not book Hormuz transits even during announced reopening windows. Roughly 500,000 containers and 20,000 seafarers remain stranded in Gulf of Oman holding patterns.

The SPR continues to drain. The Apr 22 EIA weekly status (wk ending Apr 17) is the latest in hand; the next read drops Wednesday Apr 29. SPR last printed in the ~409M barrel range (the lowest since 1984) after two emergency loan tranches drawn during the crisis (cumulative ~90M bbl authorized) and the IEA's 400M-barrel coordinated action layered on top. Watch the Apr 29 print: any further draw confirms last week's read that the 18-to-24-month reserve runway is starting to bite. EST for the trajectory; published number lags by a week.

What changed in the read: Goldman's "sloppy peace" framing matters. The $90–$110 range it now suggests, versus a $120 spike scenario or a $75 resolution scenario, is the cleanest articulation yet of the chronic case. It also matches the structural-asset action this week: gold off the highs, dollar firmer, copper stalled. If energy-services equities (HAL, WFRD, TS, PTEN, FTI on the Barclays note) start to diverge from spot crude (outperforming on a relief tape), that is the next confirmation signal. Worth watching after the FOMC.

Metals ↓ Gold off the highs, copper stalled
TL;DRGold sold $100 off the cycle high. Copper paused at $6.08 after seven weeks of grind. Steel and aluminum unchanged on tariff floor. Structural fear taking a breath.
Gold ~$4,708/oz Copper (COMEX) ~$6.08/lb Aluminum ~$2.50/lb all-in Steel (CRC) ~$1,150/short ton EST
−$99
Gold sold $99/oz off the W17 high. Yahoo Apr 27 close $4,707.80 vs Apr 20 close $4,806.60. The reversal started Tuesday on the ceasefire extension and continued through the week despite Wednesday's seizures. That is the tell: a genuine geopolitical escalation could not bid gold back to the highs. Either positioning is now too long here, or the structural-debasement bid that powered the rally has paused.

Copper (COMEX) consolidated at ~$6.08/lb after seven straight weeks of grind higher. Grasberg in Indonesia (the world's #2 mine) remains offline; Freeport has still not given a reopening date. The 50% Section 232 tariff keeps the COMEX-LME spread wide. The 2026 refined-copper deficit forecast is unchanged at ~150,000 metric tons. For a name moving against this much real-world tightness, a flat week is meaningful. Somebody is selling the rip into the structural story.

Steel CRC held the ~$1,150/short ton range; CRU March baseline at ~$1,144/ton. Aluminum all-in US delivered cost held at ~$2.50/lb, anchored by the 50% tariff and ongoing Gulf smelter damage. The 8-week change ticked down a hair on each, not because spot prices fell, but because the rolling baseline rolled forward into the early-March print. Neither has a downside path while the tariff regime stands; both also lack a fresh catalyst.

Currencies ↑ DXY +0.2%, first weekly gain in a month
TL;DRThe dollar's three-week downtrend broke this week. DXY held the 98 floor and closed firmer despite escalation. Powell on Wednesday is the next catalyst.
Dollar (DXY) ~98.29 Mexican Peso ~17.40/USD British Pound ~$1.341 Euro ~$1.176

The DXY break in the downtrend is the single most under-appreciated move on the board. Three straight weekly declines coming into W18; this week, +0.2% with intraweek prints up to 98.80. The dollar held the 98 floor cleanly through the IRGC seizures. A clean rejection of further selling, with rate-differential math finally getting some traction now that the Fed cut path for 2026 has narrowed back to one cut on the dot plot. The structural diversification trade (gold higher, dollar lower) lost its grip this week. That doesn't mean it's over. But for the first time in the crisis, the playbook is on the back foot.

Peso at 17.40 inside the established 17.2–17.5 range. Euro rolled to $1.176 from $1.18, finally honoring the bearish engulfing technicians flagged a week ago. Pound at $1.341 (−0.3% WoW) on dollar firmness. The EU rationing read remains the cap on EUR strength: Slovenia, Ireland, Italy, France all unchanged on fuel rationing.

For US importers: The hedge math from W17 changed direction. Last week DXY was sliding while oil rallied; landed cost on mixed baskets was a wash. This week DXY firmed while oil rallied; landed cost on USD-invoiced commodities went up, and non-USD baskets actually got cheaper. If you've been delaying euro-zone or peso-denominated purchases waiting for dollar strength, that window may be opening. Watch Powell on Wednesday for confirmation.

Freight ↓ Drewry WCI to $1,806 · Asia stranding deepens
TL;DRGlobal container composite −2% to $1,806/FEU. Transpac led the drop. But ~500K containers and 20K seafarers still stranded in Gulf of Oman holds. The back-end pressure is building.
Container (40ft WCI) $1,806 Trucking (van) ~$2.52/mile War risk surcharge $1,500–4,000/container Intra-Asia (IACI) $890/FEU (+2%)
500K
Approximately 500,000 containers and 20,000 seafarers remain stranded in Gulf of Oman holding patterns. Top-ten container lines confirmed Friday they will not book Hormuz transits even during announced reopening windows. Even on a clean ceasefire, tankers and box ships need weeks to redeploy. Supply shortages persist into mid-May at minimum.
PSS
Transpacific PSS at $2,000/FEU goes live this Friday, May 1. Maersk's North Europe→US/Canada PSS remains active since April 8. Carriers signaled additional Asia-Med PSSes for mid-May. Surcharges are still hardening even as the spot composite eases. The gap between contract and spot is widening.

What happened: The Drewry global composite slipped 2% WoW to $1,806/FEU on transpac softness: Shanghai-NY −6% to $2,735, Shanghai-LA −4% to $2,089. Asia-Europe held: Shanghai-Genoa −1% to $2,300, Shanghai-Rotterdam −1% to $2,165. The intra-Asia index moved the other way, with IACI +2% to $890 as Iran-driven rerouting concentrated regional volume. Net read: spot is easing on the major eastbound lanes, contract pricing is ratcheting up via PSSes, and the back-end of the system (the Hormuz holding patterns) is filling up. The composite tells the rate-buyer story; the holding patterns tell the lead-time story. The lead-time story is the one that matters for procurement.

Trucking: DAT March data ($2.52/mile, 7th straight monthly gain) remains the latest official print; April release is imminent. Diesel surcharges averaged $0.62/mile, up a tick from W17. Fleet capacity tightening continues. Q2 contract resets are pricing $5+ diesel as a floor, not a peak.

Crypto ↑ BTC clears $78K. ETH rotation stalls.
TL;DRBTC printed a fresh cycle high at $78K. ETH and SOL did not confirm. Sentiment finally back into Neutral (47) from W17's Fear (26). SEC CLARITY Act markup is the May catalyst.
Bitcoin ~$78,029 Ethereum ~$2,323 Solana ~$84.88
47
Fear & Greed Index: 47 (Neutral). Up from 26 (Fear) last week. First print into Neutral since the conflict began. The price-up / sentiment-down divergence is now four weeks old, finally starting to close. BTC cleared the $76K-78K resistance the strait was capping in W17.

What happened: BTC closed at $78,029 on Apr 26 Yahoo data, the highest in three months. Neither ETH nor SOL confirmed the move. ETH flat at ~$2,323; SOL actually down 1.3% to $84.88. The W17 ETH rotation hint did not extend. The narrative coming out of the rally is bifurcating sharply: BTC behaving as a macro hedge against the structural-debasement story, ETH/SOL rangebound on lack of fresh catalyst.

The SEC CLARITY Act markup is the next near-term catalyst. Senator Moreno's May deadline is now one working week away. The stablecoin yield framework (passive yield ban, activity-based rewards permitted) is expected in the final text. A clean legislative win in May would be the first positive structural catalyst in the crypto complex since the crisis began, and would likely catalyze the ETH/SOL re-rate that didn't happen this week.

Binary Triggers · Next 7 Days

If/then logic for the moves that matter. Trigger the action, not the headline.

IFPowell explicitly cites Iran/energy CPI risk in Wed presser
THENDXY pushes through 99 within 48h. 2026 cut path narrows to zero. Gold breaks $4,650. The structural-trade reversal we saw start this week accelerates.
IFIRGC seizes a US-flagged or US-crewed vessel
THENBrent gaps to $115+ inside one session. US response is no longer asymmetric. Goldman's $120 scenario reactivates. Insurance war-risk surcharges step up another tier.
IFPakistan channel restart confirmed with credible framework by Friday
THENBrent retests $90 floor. Diesel cracks ease. Gold bounces +$50 on dollar weakness. The "sloppy peace" inversion: structural assets bid, tactical assets sold.
IFPCE deflator (Thu) prints above 3.0% YoY core
THEN2-year yields move 10bps higher. The hot March CPI gets confirmation. DXY firms further. Risk-off across the equity complex into Friday.
IFSEC CLARITY Act markup advances cleanly with stablecoin language
THENETH/SOL re-rate vs BTC. The W17/W18 rotation stall reverses. Stablecoin issuers (Circle, Paxos) get treated as financial-rail compounders, not crypto risk.
Operator Actions · This Week

Concrete moves for procurement, treasury, and supply-chain teams given the W18 setup.

Procurement
Lock Asia-EU container contracts before mid-May.
Spot is easing on transpac (Drewry composite −2%) but PSSes are hardening on contract. The gap between the two is widening. The contract-side discount of the next 10 days won't repeat once May 1 PSSes hit and the Hormuz holding patterns clear.
Treasury
Re-evaluate EUR/peso forward hedges after Wed FOMC.
The DXY downtrend broke this week. If Powell flags energy-CPI risk, dollar firmness extends. Non-USD-invoiced purchases get cheaper. Hedges put on at DXY 97 are now in the money. Consider rolling forward instead of holding to expiry.
Energy / Logistics
Build cushion for Q2 diesel contract resets.
DAT March $2.52/mi was a 7-month high; Q2 truckload resets are baking in $5+ diesel. The brief mid-month crude pullback didn't transmit to the contract layer. Budget for a $5.40–5.60/gallon floor through Q2; structure surcharge clauses to reset weekly, not monthly.
CFO / Risk
Stress-test for a $115 Brent spike trigger.
Goldman's "sloppy peace" range is $90–$110. The tail is the IRGC-vs-US-flag scenario that takes Brent to $115+ in one session. Update the financial model with that as a 2-week tail event, not a year-end one. The trigger is operational, not policy.
Strait of Hormuz · Week 18 Timeline

View the live Hormuz tracker → Real-time vessel traffic, crisis metrics, and full timeline.

Day 58
Trump extended the ceasefire on Tuesday. By Wednesday morning the IRGC had seized two ships. Three vessels attacked over 48 hours. Trump told the Navy to shoot mine-layers on sight. Goldman called the path "maritime trench warfare to a sloppy peace." The world's top container lines refused Hormuz bookings even during the announced reopening windows. The math has shifted: this isn't a one-week resolution, and it isn't an immediate $150 spike. It is a $90-$110 grinding range with periodic spike risk.
Apr 21Trump extends ceasefire to permit continued talks. Retail Sales March released: +1.7% MoM ($752.1B), driven by record 15.5% surge in gasoline receipts. Crude trades narrow $90–93. Existing home sales March.
Apr 22IRGC seizes two foreign-flagged container ships in the Strait of Hormuz: Panama-flagged MSC Francesca and Liberia-flagged Greek-owned Epaminondas. Iranian gunboat attacks Epaminondas with gunfire and RPGs off Oman coast. EIA weekly petroleum status (wk Apr 17) released. Crude jumps $4 intraday on the seizure tape.
Apr 23Trump orders Navy to "shoot and kill" any boats laying mines in Hormuz. Three vessels attacked in 48 hours. S&P Global Flash PMI April: Manufacturing 54.0 (vs 52.5 expected, 4-year high); Services 51.3; Composite 52.0. New orders strongest since May 2022. Employment in mfg contracts for first time since July 2025.
Apr 24Drewry WCI: $1,806/FEU, −2% WoW. Shanghai-NY −6% to $2,735, Shanghai-LA −4% to $2,089. Intra-Asia IACI +2% to $890. Initial Jobless Claims (wk Apr 18): 214K. Al Jazeera publishes "Iran-Iraq Tanker War redux?" piece. New home sales March.
Apr 25Goldman publishes "maritime trench warfare to a sloppy peace" framework. $90-$110 Brent range scenario. Top-ten container lines confirmed declining Hormuz transit bookings even on announced reopening windows. ~500K containers, ~20K seafarers stranded in Gulf of Oman.
Apr 27Today. Markets reopen with WTI $96/Brent $101. DXY firms above 98.3. Gold off the highs at $4,708. FOMC convenes; decision Wednesday.
Risk
Geopolitical Critical · Naval Standoff
  • Three vessels attacked in 48 hours. IRGC tit-for-tat for Touska is operational, not just rhetorical. Tactic of choice now: foreign-flagged proxies, not US
  • Trump's "shoot and kill" order on mine-layers raises the floor of US engagement. Any further IRGC action against shipping risks direct US-Iran fire
  • Pakistan channel partially reopened then sabotaged within 24 hours. Diplomatic cycle now appears stuck on a one-step-forward, two-back rhythm
  • "Sloppy peace" is now Goldman's base case. Implies a $90-$110 grinding range with periodic spike risk, not a clean resolution path before late summer
Supply Chain High · Back-End Pressure Building
  • ~500K containers / ~20K seafarers stranded in Gulf of Oman holding patterns. Even on a clean ceasefire, redeployment takes weeks
  • SPR last printed ~409M barrels (wk Apr 17). Two emergency loan tranches drawn so far. Lowest since 1984. Apr 29 EIA read is the next signal on burn rate
  • Drewry WCI eases on transpac but PSSes harden on contract. Spot/contract gap widening; buyers benefit short-term, lose on the renewal
  • Top-ten container lines now refusing Hormuz transits even during announced reopening windows. Carrier-side de-risking is now structural, not tactical
Economic Snapshot
CPI YoY
3.3%
March print. Next read May 13.
PPI YoY
4.0%
March. Energy +8.5% MoM. Core +0.2%.
Retail Sales MoM
+1.7%
March. Gas receipts +15.5%.
Mfg PMI (flash)
54.0
April. 4-yr high. Beat 52.5 forecast.
Svc PMI (flash)
51.3
April. Above 50 forecast.
Claims
214K
Wk ending Apr 18. Labor still firm.
Fed Rate
3.50–3.75%
FOMC Wed Apr 29. Hold @ 99.9% (Polymarket).
SPR
~409M bbl
Wk Apr 17. Lowest since 1984. Next: Apr 29.
DXY
~98.3
First weekly gain in a month. Held 98 floor.
Week Ahead
Mon 27Today. Markets digest weekend posture. Treasury auctions. Watch for any IRGC follow-up or Pakistan channel update before Tuesday's FOMC opens.
Tue 28FOMC begins. Consumer Confidence April. JOLTS March. Wholesale inventories. Confidence reading is the cleanest signal of how the war is hitting household sentiment vs the Beige Book read.
Wed 29FOMC decision 2 PM ET. Powell presser 2:30 PM. Hold priced at 99.9%. Listen for: explicit mention of energy-CPI risk; whether the 2026 cut path is reaffirmed at one cut; any framework language on tariff passthrough. Also: Q1 GDP advance, ADP employment, durable goods March, pending home sales.
Thu 30PCE deflator March (Fed's preferred inflation gauge). Personal Income & Spending March. Jobless Claims (wk Apr 25). Chicago PMI. Core PCE above 3.0% YoY would lock in the hawkish read from Powell.
Fri 1ISM Manufacturing PMI April. Auto sales April. Transpac PSS $2,000/FEU goes live. ISM is the official confirmation of S&P Flash PMI 54.0. Week closes with focus on whether IRGC has retaliated to the FOMC tape, and whether the May Day trigger lands cleanly on freight.
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Week 17: The Whipsaw Reverses. Oil Crashes $18, Then US Seizes the Touska
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