Iran peace deal clears shipping lanes — bargain hunt shipping and emerging marke
Thesis
The new US-Iran deal reopens crucial shipping lanes and helps stabilize global energy costs. This is a massive relief for Asian and emerging-market economies that rely heavily on imported oil and maritime trade through those straits. Companies that recently warned about war disruptions, like BMW, show how much pent-up pressure these supply chains have faced. As the fear premium comes out of oil prices, emerging market stocks stand to benefit from improving profit margins and lower transportation costs.
Strategy approach
Build a long-only mean-reversion strategy on EWM (iShares MSCI Malaysia ETF) using the Daily timeframe. Entry: Price is trading above the 200-day SMA, but the 14-day RSI drops below 40. Exit: 14-day RSI crosses back above 60, or a 10% profit target is hit. Include a 5% stop loss.