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Brent drops below $90 as Iran, Oman diplomacy eases supply fears
OCBC links the move to improved shipping prospects through the Strait of Hormuz after an Iran and Oman joint framework on safer navigation.
Brent crude moved below $90 per barrel after improving diplomatic prospects for shipping through the Strait of Hormuz eased concerns about Middle East supply disruptions, according to a note from OCBC Bank strategists Sim Moh Siong and Christopher Wong.
FXStreet reports that Iran and Oman unveiled a joint framework aimed at restoring safer navigation through the Strait of Hormuz following talks in Tehran, and that Pakistan’s army chief concluded a one day visit to Iran with constructive outcomes reported by local media.
The strategists also pointed to additional signals that reduced expectations of an imminent broader escalation, including reports that the US plans to return diplomats to embassies across the Middle East.
FXStreet adds that lower oil prices helped weigh on US and European bond yields, with markets turning to upcoming US core PCE data and Jackson Hole for guidance on the Federal Reserve’s inflation priorities.
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%