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Houthi drones and missiles fired at U.S. warship in Red Sea intercepted as Iran claims seizure of oil shipment

In a recent development in the ongoing conflict in the Middle East, a U.S. Navy destroyer successfully intercepted drones and a missile launched by Yemen’s Houthi rebels towards the vessel in the Red Sea. The incident took place on Tuesday and involved the USS Carney, an Arleigh Burke-class destroyer that has been actively engaged in the U.S.-led campaign against the Iran-backed Yemeni rebels.

The Central Command of the U.S. military confirmed the Houthi’s assault on the USS Carney and stated that the attack was thwarted by the swift response of the U.S. Navy. This incident comes amidst heightened tensions in the region, with the Houthi rebels citing Israel’s war against Hamas in the Gaza Strip as a rationale for their attacks.

In a separate incident, the British military’s United Kingdom Maritime Trade Operations center reported an unspecified incident near the southern Yemeni coast. Private security firm Ambrey reported an explosion near a vessel, although details remain scarce.

Meanwhile, Iran, a key supporter of the Houthi rebels, announced its seizure of a $50 million cargo of Kuwaiti crude oil destined for American energy firm Chevron Corp. The oil cargo was aboard a tanker that Iranian forces had seized almost a year ago, marking the latest escalation in the shadow war playing out in the Mideast’s waterways.

Iran claimed the seizure was in response to alleged U.S. sanctions barring the importation of a Swedish medicine used to treat patients suffering from a rare genetic condition. The conflicting reasons offered by Iran for the seizure underscore the complex web of geopolitical tensions in the region.

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The Houthi rebels have vowed to continue their attacks until the Gaza war ends, underscoring their commitment to their cause despite U.S.-led airstrikes targeting their forces. The rebels have demonstrated their capability to launch significant attacks, including targeting ships in the Red Sea and surrounding waters.

The ongoing conflict in the region has led to ship seizures, explosions, and naval confrontations that have roiled the region since 2019, following the U.S.’s withdrawal from the Iran nuclear deal. The U.S. Navy has accused Iran of orchestrating attacks on vessels and oil tankers, further escalating tensions and contributing to the volatility in the region.

The recent developments highlight the precarious situation in the Middle East, with multiple actors vying for influence and control over strategic waterways. The continued military confrontations and seizures of oil shipments underscore the urgent need for diplomatic solutions to de-escalate tensions and avoid further violence in the region.

Intellectuals Insider

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Is now the right time to invest in gold as prices have cooled?

Now may be the time to buy gold following a recent lull in its price.

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The price of gold has climbed to record highs recently and has remained strong through much of April. And, that growth continued until the precious metal traded at around $2,390 per ounce on April 19, 2024. But since, growth in the price of the precious metal has cooled, with gold’s price now hovering around $2,300 per ounce.

This lull in gold’s price may represent an investment opportunity.

In general, investing is centered around buying assets when prices are low and selling them when prices are high – generating a profit on the difference between the two. So, considering the declines in gold’s price over the past few days, now may be the time to make your investment. But is buying gold during this lull in prices really a good idea?

Compare your gold investment options among leading brokers now.

Gold prices have cooled. Should you buy in now?

With gold’s price down from recent highs, you may be wondering if now is the right time to buy in. There are several reasons the dip in gold’s price may represent an opportunity to buy. Here are some of the biggest:

Prices may rise again

If looking at a gold price chart shows anything for certain, it shows that changes in the overall growth of the medal come in fits and spurts. Periods of price growth are typically followed by periods of declines and vice versa.

But with inflation rising in recent months – and with gold’s reputation as a safe-haven asset that can hedge against inflation – it only makes sense that the price of the precious metal will eventually start to head up again in the future. While attempting to time that directional change may be tricky, buying the precious metal while the price is down gives you the opportunity to take advantage of any upward movement that may be ahead.

Add gold to your portfolio now before prices have a chance to rise.

You may be able to make a quick profit

Gold isn’t known as an asset in which you can earn a quick return, but in today’s market, that may be the case. Don’t forget that in January, gold was trading at just $2,000 per ounce. And, by mid-April, the commodity’s price had climbed to around $2,400 per ounce. That’s about 20% growth in a matter of months, much of which happened since March 1 – an impressive climb for any investment asset.

Perhaps more importantly, gold’s price growth through the beginning of 2024 shows that the commodity doesn’t have to be a buy and hold style investment that you keep in a safety deposit box or precious metal depository for years to come. There’s also the possibility that the commodity’s price could climb further ahead, making it a compelling way to potentially generate a quick profit.

There are other benefits of investing in gold

There are other benefits of investing in gold that have little to do with the price growth seen thus far in 2024 – or the lull in prices seen over the past couple of days. Those benefits include:

Inflation protection: Gold has long been considered an inflation hedge, and for good reason. When inflation drives the prices of consumer goods and services up – and the value of the dollar down – gold’s price tends to rise. So, it could be used to maintain the value of your portfolio during inflationary economic conditions. That’s important in today’s economic environment as stubborn inflation continues to weigh on the value of the dollar.
Portfolio diversification: Gold’s price doesn’t always move in the same pattern that bonds or stocks do. So, mixing a reasonable amount of gold into your portfolio (up to 10% of your portfolio assets) as a diversifier could protect you from losses should one or more of your traditional portfolio assets fall in value. “If you have less than 5% – 10% of your net worth in commodities & FX (forex), you should absolutely consider adding exposure to gold and other precious metals,” says Vijay Marolia, money manager and managing partner at the wealth management firm, Regal Point Capital.

The bottom line

Gold’s price has fallen from recent highs – which may represent an opportunity to tap into growth ahead. However, gold isn’t simply a “buy while it’s low and sell while it’s a high” kind of investment opportunity. The commodity can also protect your portfolio from the stubborn inflation we’ve seen thus far in 2024 while acting as a diversification tool that could increase your risk-adjusted portfolio returns. So, consider adding gold to your portfolio today while it has the potential to grow in value.

Joshua Rodriguez

Joshua Rodriguez is a personal finance and investing writer with a passion for his craft. When he’s not working, he enjoys time with his wife, two kids, two dogs and two ducks.