DATA & FIGURES
Investing $10,000 in oil on February 27, 2026, would be worth $10,655 today, a gain of $655. In contrast, a $10,000 investment in gold would be worth $7,865, a loss of $2,135. A $10,000 investment in silver would be worth $6,492, a loss of $3,508. A $10,000 investment in Bitcoin would be worth $9,707, a loss of $293. Copper, which has risen due to artificial intelligence and electrification, would be worth $10,462, a gain of $462.
THE SCENARIO
The global economy has been significantly impacted by the war in the Middle East, with oil prices rising due to supply fears. The price of oil peaked at $112.95 on April 7, 2026, before settling back to $71.41. The war has also had a significant impact on the price of gold, which had already risen due to geopolitical tensions and expectations of Federal Reserve rate cuts. However, the appointment of Kevin Warsh as Federal Reserve chair and a stronger dollar have led to a repricing of Fed policy, resulting in a significant loss for gold investors.
DIRECT QUOTE
"The war trade in oil worked, but it worked for about six weeks." — Mehab Qureshi, TheStreet
BBN INSIGHT
The impact of the war on the global economy has been significant, with oil and copper being the only two investments to yield a profit. The Positive Side of this is that investors who put their money into oil and copper have seen a significant return. However, The Negative Side is that investors who put their money into gold, silver, and Bitcoin have seen significant losses. The war has also highlighted the importance of diversification, with investors who spread their money across different assets being less affected by the market volatility.
MARKET REACTION
The price of oil has risen significantly due to supply fears, peaking at $112.95 on April 7, 2026. The price of gold has fallen due to a stronger dollar and a repricing of Fed policy, with a $10,000 investment now being worth $7,865. The price of Bitcoin has seen a relatively small loss, with a $10,000 investment now being worth $9,707.