US President Donald Trump told the UN General Assembly that the US should remain united in maintaining pressure on Iran and urged Tehran to make a deal. He said he expects the US and Iran to reach an agreement after the US midterm elections in November, while adding that he has a decision to make on Iran and calling on all nations to economically isolate Tehran. Trump also stated that Iran will never have a nuclear weapon.<\/p>\n\n
On energy flows, he said more oil is moving through the Strait of Hormuz than at any point since the war began, and added that big changes can happen fast. Separately, he described Cuba as a failed state and said freedom would come to the country, while saying US Secretary of State Marco Rubio is engaged in negotiations with Cuba. Trump said the US will build two major military bases in Greenland and that he will sign a Greenland agreement later today.<\/p>\n\n
We must prepare for significant swings in the energy markets as the administration pushes to economically isolate Iran while claiming high oil flows through the Strait of Hormuz. Given that roughly 20 million barrels of oil pass through this vital chokepoint daily, representing about 20% of global consumption, any sudden friction could trigger a massive price spike. We recommend buying crude oil straddles or strangles expiring in late November to capitalize on this guaranteed volatility leading up to the midterm elections.<\/p>\n\n
The historic Greenland agreement to build two major U.S. military bases opens up immediate opportunities in the defense and aerospace sectors. We should go long on call options for major defense contractors and rare earth mining ETFs, as Greenland holds some of the world’s largest untapped critical mineral reserves. This strategic expansion will likely drive capital into national security assets and mining infrastructure over the coming weeks.<\/p>\n\n
With Secretary of State Marco Rubio deeply embedded in negotiations over Cuba, we anticipate sudden policy shifts that will impact Caribbean and Latin American exchange-traded funds. Traders should look to buy cheap, out-of-the-money call options on emerging market ETFs to position for a potential regional opening. Historically, even minor diplomatic breakthroughs in heavily sanctioned nations spark explosive short-covering rallies in related equities.<\/p>\n\n
As we approach the November midterms with the promise of a post-election Iran deal, market anxiety is bound to rise before it settles. We advise buying near-term VIX call options to hedge against October volatility, while simultaneously writing longer-term put options on the S&P 500. This dual strategy allows us to profit from immediate fear while positioning for a strong relief rally once the election dust clears.<\/p>\n\n\n\n