"Cautious optimism around a potential extension of the US-Iran ceasefire against persistent supply constraints could continue to fuel some uncertainty and volatility risk."
"The Strait remained closed, sustaining concerns over global supply availability. A prolonged closure could tighten the market further."
"In the event of a resolution and opening of the Strait, the return to normal shipping conditions and to previous production levels could take time and leave oil prices elevated for longer."
"Looking ahead, the market could remain exposed to some volatility according to the developments on the ground. As such, any setbacks could fuel another surge in prices."
Oil prices have stabilized after a decline but remain sensitive to Middle East developments. Cautious optimism regarding a potential extension of the US-Iran ceasefire may introduce uncertainty and volatility. An extended truce could impact oil prices, while the physical supply backdrop remains restrictive due to the closed Strait, raising concerns over global supply. A prolonged closure could tighten the market, and any resolution may take time to normalize shipping and production, keeping prices elevated.
Read at London Business News | Londonlovesbusiness.com
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