BAB EL Mandeb Strait

Natural gas is attempting to regain the $3.00 to $3.05 area after a sharp pullback, with traders still focused on the EIA backdrop. WTI and Brent have recovered from weaker levels as markets weigh stock releases against the risk of Saudi military action against the Houthis.

Oil prices recovered from session lows as traders weighed a possible Saudi operation against the Houthis and the risk of wider Middle East escalation. Natural gas also gained ground as dip buyers returned after a sharp pullback and watched the $3.00 to $3.05 resistance area.

Natural gas moved higher after a smaller-than-expected storage build in the EIA weekly report, though technical traders are still watching nearby resistance. WTI and Brent crude recovered from session lows as markets weighed Middle East supply risks and key price levels.

WTI and Brent recovered after weekend developments undercut hopes for a temporary shipping agreement involving Iran. Traders are watching Hormuz traffic, Saudi repair updates, and key technical levels as supply risk remains elevated.

Hard assets are gaining renewed attention as sticky inflation, elevated borrowing costs, geopolitical disruptions and constrained physical supply reshape global market positioning. Energy, metals and agricultural commodities are increasingly being viewed as scarce, tangible alternatives in a higher-for-longer macro regime.

The U.S. dollar gained ground as traders weighed August producer price data, a strong rally in Brent oil and expectations for a hawkish Federal Reserve. EUR/USD and GBP/USD retreated, USD/CAD pushed toward resistance, and USD/JPY climbed as Treasury yields moved higher.

Hard assets are increasingly acting as a pressure valve for investors facing sticky inflation, higher borrowing costs and geopolitical supply threats. Oil, agriculture, metals and energy-linked commodities are drawing renewed attention as traders reassess the outlook for scarce physical assets.

WTI and Brent oil rallied sharply as traders priced in heightened risk around key Middle East shipping routes following the seizure of Mokha on the Red Sea. Natural gas attempted to rebound despite a larger-than-expected weekly storage build in the latest EIA data.

GBP/USD is consolidating near a key technical support zone after rising from its June low, with traders weighing energy-market stress, elevated bond yields, and upcoming macroeconomic data. Bulls are watching for a move toward the top of the ascending channel, while bears see risk if the pair breaks below channel support.