Contributor: Edward Meir

Markets remained frazzled last week as the conflict in the Persian Gulf entered its fourth week – with no end in sight.

We had another topsy-turvy week in the markets as the war in Iran monopolized investor attention.

Based on our experience of watching previous conflicts, we believe investors tend to have a rather dispassionate view of conflagrations as long as there is no potential impact on oil flows. Although some oil producers have voluntarily curbed shipments through the Gulf, they might resume them once things settle down.

In an unusual first, pretty much all the markets we follow finished higher last week.

A weekly review of global political developments, market volatility and key macroeconomic data shaping equities, commodities, energy and trade heading into the week of Feb. 16.

Last week was another wild time for the markets.

Last week was one for the history books, particularly for those involved in trading precious metals in any way, shape, or form. After weeks and months of relentless price increases, the complex staged one of its most dramatic one day sell-offs on record.

A weekly review of global political developments, market volatility and key macroeconomic data shaping equities, commodities, energy and trade heading into the week of Jan. 26.

From the physical side, as prices for key commodities soar, demand retrenchment – if not outright destruction – materializes. We see this sign most clearly in the Chinese physical markets, which have turned extremely quiet of late in light of the steep price run-ups. That’s particularly the case in copper, nickel, and aluminum.

Trade deals, substitution, and the Midwest premium in the year ahead