Energy Cable #52: Suez Troubles or a Houthi peace deal with Shipping companies?
We’ll start this week’s newsletter where we left off last week and touch upon the latest action in the Red Sea. As of Sunday, there is only one container ship taking the shortcut through the Suez Canal. That ship sails under the Russian flag which should tell you all about the current situation in the strait. Both US and Iranian ships are patrolling the area in addition to the latest Houthi attacks.
Following recent events in the Red Sea, we jumped into a long position in the BOAT ETF last week at 32.30, with a target set at 35.58 and a stop placed at 30.68. This trade has hit a snag today due to rumors circulating about a potential agreement between certain shippers and the Houthi rebels, which could allow cargo to flow through the Red Sea once more. While major shipping lines have denied these talks, the markets have reacted with a bit of a frenzy. Whether we’re in for a turnaround in the days ahead is something we’ll have to wait and see.
We’ll keep a close eye on the situation and commit to sharing updates should there be any significant developments, whether for better or worse.
Have Shipping companies suddenly made a deal with the Houthis? It sounds unlikely to us, and we will address why in this Suez Special of our Energy Cable publication.