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Brent slips after optimism over US-Iran ceasefire, Hormuz risks persist
Rabobank says war insurance costs have risen and shipowners are being told to pause Strait of Hormuz voyages, keeping oil traffic constrained.
Rabobank strategist Molly Schwartz said Brent oil demand flows through the Strait of Hormuz remain constrained even after a nominal US-Iran ceasefire announcement, citing higher war insurance costs for shipping.
In response to the news, Brent crude briefly traded above $80 per barrel before retracing to around $76 per barrel, with markets still described as staying optimistic even as more than half of the move was given back.
Schwartz added that early reports indicated the power plant itself was not hit, and that Brent did not react to the announcement itself.
Despite the ceasefire headlines, Rabobank reported that shipowners are being advised to pause Hormuz voyages, a factor that continues to shape the oil market outlook.
Latest closeWTI crude $71.84 ▼2.3%|Brent $75.98 ▼2.6%