Coffee and a Mike Eric Yeung #1324
Mar 4, 2026
Eric Yeung, a geopolitical and commodities analyst focused on precious metals, discusses Iran-related conflict and oil shocks. He examines disappearing Shanghai silver inventories, global deleveraging risks and sovereign liquidations, insurance gaps and shipping vulnerability, and how currency moves drive dollar demand for oil.
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Markets Pricing An Oil Shock From Straits Of Hormuz
- Global markets are pricing a potential oil shock from Iran and the Straits of Hormuz, causing equities and sovereign bonds to sell off while oil spikes 7–8%.
- Eric Yeung links the move to fears of the Straits closing or insurers refusing coverage, prompting buyers to raise dollars for oil purchases.
Sovereign Bonds Selling Signals Systemic Deleveraging
- Sovereign bond prices fell (yields rose) simultaneously with equities and precious metals, signaling a broader liquidity/deleveraging move rather than just equity risk-off.
- Yeung compares the action to March 2020 but notes bonds selling off too, amplifying systemic stress concerns.
Japan Could Be Liquidating To Secure Oil
- Japan may be selling assets because it only has about 250 days of oil reserves, forcing it to liquidate U.S. Treasuries and equities to secure oil if supply routes are threatened.
- Yeung suggests that allied coordination failures (U.S. not warning Japan) could push importers to act defensively.