Brent: Iran talks keep risk premium in focus – Deutsche Bank

Deutsche Bank analysts emphasize that the Iran-Oman talks concerning a new shipping framework through the Strait of Hormuz are still uncertain, with Tehran linking any enduring solution to broader demands on the US. Brent Oil rebounded from midweek lows but concluded last week considerably lower, as markets priced a partial de-escalation in Middle East tensions.

The selection of Mohsen Rezaee, a former Revolutionary Guard commander, as head of the Supreme National Security Council increases hard-line influence at the decision-making level, despite Iranian officials claiming proximity to an agreement with Oman. Foreign Minister Abbas Araghchi has termed the discussions as nearing completion, but Tehran underlines that a technical agreement on shipping routes would not independently reopen the waterway.

Reports from Reuters and other major outlets indicate Iran insists on tying any lasting Hormuz arrangement to wider demands on the US, such as sanctions relief, compensation for war damage, and security guarantees. The optimism from negotiations between Iran and Oman faded as details of a potential deal on Thursday raised questions about US acceptance and the extent of free-flowing shipping through the Strait of Hormuz.