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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InAnalysts are warning that a potential closure of the Strait of Hormuz represents a major systemic risk to global financial stability, specifically targeting the US Treasury market. Such a disruption in the Middle East would likely destabilize fixed-income assets due to massive inflationary shocks resulting from energy supply chains. While bonds face significant downward pressure, gold is expected to act as the ultimate safe haven in this scenario, with projections suggesting prices could skyrocket to $6,000 per ounce. The resulting spike in WTI crude oil prices would further exacerbate global inflation, complicating the Federal Reserve's monetary policy path. Investors are closely monitoring these geopolitical developments as the risk of regional conflict threatens critical energy transit routes, driving massive flows into hedging assets.