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00:02Oil traders coined the term nacho, short for Not a Chance Hormuz Opens,
00:07as markets grow skeptical that the Strait of Hormuz crisis will end soon, according to CNBC.
00:14Hetero analyst Xavier Wong said,
00:16The NACHO trade reflects growing market acceptance that elevated oil prices
00:22are no longer viewed as a temporary shock, but as part of the current market environment.
00:27The U.S. and Iran exchanged fire in the Strait of Hormuz on Thursday,
00:32further straining a ceasefire agreement that had already faced repeated accusations of violations.
00:37Brent crude remained above $100 per barrel on Friday and more than 38 percent above pre-conflict levels,
00:45while shipping and insurance markets continued signaling concern despite periodic ceasefire headlines.
00:51Analysts at State Street Global Advisors said the NACHO trade is unfolding alongside the TACO trade
00:57tied to Trump's tariff and geopolitical strategies.
01:00Analysts warned a prolonged Strait closure could fuel inflation and increase risks of a global downturn.
01:06For all things money, visit Benzinga.com.
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