Over the weekend and in a historic first, the United States put to usage their bunker-buster missiles and conducted military strikes on three Iranian nuclear facilities, in order to dismantle Tehran’s nuclear program and prevent the regime from ever achieving nuclear proliferation.
Seven B-2 bombers, 125 aircraft, and more than 75 precision-guided weapons conducted the largest operational strike in US history and targeted the Natanz, Isfahan and Fordow facilities, damaging them severely according to US reports.
Iran’s foreign minister, Abbas Araghchi, noted that US attack on Iran’s nuclear facilities has severely questioned the NPT, shaken the non-proliferation regime and will have negative consequences for international security. He also vowed “everlasting consequences” after the blatant attack from the United States and the world now awaits Iran’s response.
Experts project that Iran could strike American bases in the Middle East or possibly shut down the shipments from the Strait of Hormuz, from which approximately a third of global crude oil supply, flows out from.
A surprise closure of the key trading route and the disruption of flows could send crude futures soaring higher and lead to higher consumer prices in the foreseeable future.
Needless to say, America entering another never-ending war in the region would most likely spur up demand for safe haven assets, such as gold and possibly silver, from investors attempt to protect their portfolios amidst troubling geopolitical times.
Technical Analysis
WTI Chart – Crude futures erase 5% intraday gain as traders monitor closely possible supply disruptions in the Strait of Hormuz
Resistance: 77.60 (R1), 80.70 (R2), 85.00 (R3)
Support: 72.50 (S1), 68.50 (S2), 64.50 (S3)
