How the U.S.-Iran Deal Put A Higher Floor Under Oil Prices
Analysts say the 14-point framework could restore 13 million barrels a day of shut-in Middle East supply and send Brent down $5 to $10 a barrel.
- On Wednesday, President Trump signed a 14-point Memorandum of Understanding with Iran in Versailles, establishing a framework to negotiate a final deal within a maximum of 60 days.
- The agreement aims to resolve regional tensions and reopen the Strait of Hormuz, through which roughly one-third of the world's traded oil passes, with Iran committing to facilitate safe passage.
- Brent Crude prices slumped below $80 per barrel this week, with analysts expecting a further $5 to $10 drop upon signing as markets react to potential supply recovery.
- While the MOU provides Iranian economic relief, including sanctions waivers and a $300-billion reconstruction fund, it leaves Iran's nuclear program at 60% uranium enrichment and Hezbollah tensions unresolved.
- Analysts warn the deal is merely a framework for negotiations rather than a final peace agreement, noting that no underlying regional tensions have been resolved by the accord.
11 Articles
11 Articles
How the U.S.-Iran Deal Put A Higher Floor Under Oil Prices
Analysts are back to expecting a huge oil glut next year as they see the U.S.-Iran deal as the end of the worst of the Middle East crisis. The deal is actually just the beginning of long processes of negotiations, a reopening of the Strait of Hormuz, recovery of the more than 13 million barrels per day (bpd) of shut-in oil production in the Middle East, and a world so low on inventories – except in China – that refilling these will support oi…
The financial markets and mainstream media seem to be celebrating the peace agreement between Washington and Tehran too early. While the price for the Brent variety fell below the $80 mark in the short term, industry experts and oil companies are sounding the alarm. Because the global oil warehouses have been pumped to a historical, just functioning minimum. An early end to the crisis is an illusion. According to a recent analysis, the oil marke…
U.S.-Iran deal lifts equities, oil drops, crypto stays cautious - The Blockopedia
The U.S.-Iran peace deal reached over the weekend gave many markets the push they had been waiting for. Oil fell more than 4% on news that the Strait of Hormuz would reopen, while copper jumped. MSCI’s broadest index of Asia-Pacific shares rallied 3%, and Japan’s Nikkei 225 hit a record high. Crypto markets, however, only […] The post U.S.-Iran deal lifts equities, oil drops, crypto stays cautious appeared first on The Blockopedia.
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