KG Gauges Path to Crude Oil "Equilibrium" in Recent Price Plunge

• Crude oil (WTI) is down over 10% to around $81, reaching its lowest level since March 10, following Iran's announcement about the Strait of Hormuz being open.
• Conflicting reports from Iran create uncertainty, but the immediate market reaction is a downward pressure on oil prices, with $75 identified as a key support level.
• Equity markets, including the S&P 500 and NASDAQ-100, are opening at new all-time highs, benefiting from the decline in crude oil prices and the associated positive outlook for inflation and global economy.
• A broadening of the equity rally is noted, with all 11 S&P sectors showing gains over the last six months and recent rotations seeing industrials, healthcare, and discretionary sectors catching a bid, while software leads this week's rally.

Crude oil prices have plunged due to Iran's statement about the Strait of Hormuz being open, leading to a negative correlation with equity markets, which are rising to new all-time highs. While conflicting reports exist regarding the Strait's full openness, the market is optimistic about lower inflation expectations and a broadening equity rally, with sector rotations observed.