Oil prices slide on hopes of a US-Iran peace deal
Oil prices fell on growing expectations of a possible US-Iran agreement. Trump's comment that any deal would include reopening the Strait of Hormuz eased supply fears in the market. Some analysts, however, remain cautious about a quick resolution.
Oil prices slipped as hopes grew of a possible peace agreement between the United States and Iran. Markets reacted to Trump's weekend comment that any deal would include reopening the Strait of Hormuz. Brent crude traded at around $95 a barrel.
The 'war-risk premium' that had been added to prices during the conflict began to ease on the diplomatic signals. The Strait of Hormuz is a critical chokepoint through which a large share of the world's crude oil and liquefied natural gas passes. The prospect of fewer disruptions there pushed prices lower.
Some analysts, however, warn the process is fragile and that the strait could stay closed for months. Investors are watching whether the talks between the parties turn into a concrete agreement. None of this constitutes investment advice.
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