Oil price surge triggers a wave of risk aversion as investors await the "worst moment"

Golden Ten Data reported on March 9 that as the Middle East situation enters its second week, Brent crude oil surged about 30% last week, marking the largest weekly gain in six years, with prices holding above $90 per barrel. Dave Mazza, CEO of Roundhill Financial, stated: "Although the market performed better than expected in the initial shock, damage to oil infrastructure has changed the situation. This is no longer just about the actual closure of the Strait of Hormuz; supply disruptions are spreading deeper into the region. This shift may prompt already nervous investors to further reduce their positions for risk aversion." Michael O’Rourke, Chief Market Strategist at JonesTrading, said: " " In the credit market, the premium investors demand for holding investment-grade bonds over Treasuries has widened to a three-month high. Meanwhile, hedge funds have cut their net risk exposure to the lowest level since 2022.