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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 InAmid escalating geopolitical tensions, HSBC has warned that maritime disruptions in the Strait of Hormuz and Bab el-Mandeb are threatening a severe supply squeeze in global commodity markets. According to reports, the bank's chief economist highlighted that the spread of chaos across key chokepoints, coupled with intensified fighting in the Black Sea, could lead to a 'super-squeeze' in energy and agricultural sectors. This warning comes as Brent oil exceeds $100 per barrel, driven by stalled traffic through vital straits and the depletion of global strategic reserves.
Market data indicates that European and Asian gas prices have surged by more than 40% month-on-month, while wheat prices have hit a three-year high due to supply constraints. Per market data, shares of HSBC (0005.HK) stood at 161.4 HKD as of the close on July 24, 2026. The commodity crunch is further evidenced by a 13% rise in urea prices and surging refined product costs, reflecting a fragmented market where supply shocks are forcing non-linear price movements across different geographies.
Traders should closely monitor instrument levels, with 0005.HK priced at 161.4 HKD (close July 24, 2026) following a daily range between 159.3 and 161.6. Recent economic calendar data showed a surprise build in US API Crude Oil Stocks of 2.603 million barrels on July 21, contrary to expectations of a drawdown. Future catalysts will center on maritime security developments and their direct impact on energy price stability and global trade flows.