Oil: Prices slide on halted strikes – Commerzbank
Commerzbank’s FX Research team reports that Brent Oil opened over 7% lower under USD84 into the Asian session after President Trump said the US would hold off on new strikes against Iran.
Commerzbank's FX Research team reveals that Brent Oil prices experienced a significant drop, opening over 7% lower at under USD84 during the Asian trading session. This decline occurred after President Trump stated that the US would refrain from launching further strikes against Iran. The Strait of Hormuz remains effectively closed, perpetuating oil exports disruptions and raising inflation concerns in Asia and Africa.
OPEC+ had previously agreed to a modest output increase for September, but the ongoing closure of the Strait of Hormuz persists as a major issue. President Trump announced on social media that he had agreed to cease the attack "subject to being able to rapidly make a DEAL," with Saudi Arabian Crown Prince Mohammed bin Salman urging Trump to avoid further military actions.
Despite OPEC+ approving a further increase of 188k barrels a day in collective output targets for September, the situation remains tense as geopolitical tensions continue to impact global markets.
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- Oil: prices slide on halted strikes – Commerzbank fxstreet.com
