Oil’s collapse is a matter of physical inventory. Following the memorandum of understanding that reopened the Strait of Hormuz, tanker traffic has surged, flooding the market with previously locked-out supply. Even recent diplomatic friction in Doha, where Iran declined meetings with U.S. envoys Jared Kushner and Steve Witkoff, has failed to reverse the trend, providing only a temporary floor for prices. Brent crude suffered its largest quarterly decline since 2008, while WTI saw its steepest drop since 2020.

Gold, conversely, is buckling under shifting monetary policy. Cleveland Fed President Beth Hammack signaled this week at the European Central Bank’s Sintra forum that current interest rates are failing to restrain the economy, suggesting further hikes may be necessary to hit the 2% inflation target. This hawkish turn, championed by new Fed Chair Kevin Warsh, has forced traders to abandon bets on rate cuts. The technical fallout is evident: gold has formed a death cross, with its 200-day moving average crossing below its 50-day average. Strategist Li Xing Gan of Exness notes that this pattern has intensified selling pressure, leaving the metal at $3,983.07 an ounce—its lowest level since November.