Oil prices just dropped sharply and stock futures surged after the Iranian foreign minister said the Strait of Hormuz will be “completely open” for commercial transit during the remainder of the ceasefire.
Brent crude, the global benchmark, fell 9%, to $90 per barrel. WTI, the US benchmark, sank 9.5% to $82.60 per barrel.
US stock futures rallied: Dow futures rose 560 points, or 1.16%. S&P 500 futures gained 0.8%, and futures tied to the Nasdaq 100 rose 0.9%.
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Here's the latest
Strait of Hormuz: Iranian Foreign Minister Abbas Araghchi says the vital trade chokepoint is now open to all commercial vessels for the remaining period of the truce, adding that this is in line with the Israel-Lebanon ceasefire.
Ceasefire in effect: A 10-day truce in Lebanon appears to be holding despite the Lebanese army accusing Israel of violations. Israel said its forces would not withdraw from southern Lebanon, and Iran-backed Hezbollah warned it would only abide by the truce if Israeli attacks stopped.
Diplomacy push: US President Donald Trump said a White House meeting between Israel and Lebanon could take place within two weeks. The conflict with Hezbollah has been a key sticking point in negotiations on the war with Iran. Trump also voiced confidence that a deal with Tehran will come soon, saying talks could happen this weekend. < "Talks" and a "Deal" may be miles apart.
Israeli embassy: British police are investigating after an unnamed group said it would target the Israeli embassy in London with drones carrying dangerous substances.
Why have oil prices declined today?
Why have oil prices declined today?
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Why have oil prices declined today?
"I believe that crude oil prices will eventually head substantially lower. However, the current conflict could cause periodic price spikes. The Iranian theocracy’s strategy appears to be to inflict maximum economic damage to the U.S. administration. While they may have a few short-term victories, the odds favor an eventual resolution that includes lower oil prices. However, the price action is likely to be a wild ride until it gets there." - Andrew Hecht at BarCharts
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Why have oil prices declined today?
AI Generated oil price forecasts are updated several times a day here:
https://longforecast.com/oil-price-today-forecast-2017-2018-2019-2020-2021-brent-wti
Wild Price Swings will continue until an enforceable peace agreement with Iran is reached.
"Blockade on Iran will continue, Trump says, after Iran says it will reopen Strait of Hormuz."
https://longforecast.com/oil-price-today-forecast-2017-2018-2019-2020-2021-brent-wti
Wild Price Swings will continue until an enforceable peace agreement with Iran is reached.
"Blockade on Iran will continue, Trump says, after Iran says it will reopen Strait of Hormuz."
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Why have oil prices declined today?
BBC Update:
Summary
Iran's foreign minister says the Strait of Hormuz is "completely open" to commercial ships for the remainder of the ceasefire
"THANK YOU!" Donald Trump posts on Truth Social - moments later, he says the US naval blockade of Iranian ports will remain in place until a permanent peace deal is agreed
The confirmation came as the UK and France hosted a meeting with dozens of other countries to discuss freedom of navigation in the Strait
Earlier, a 10-day ceasefire between Israel and Lebanon began, with celebrations and fireworks in Beirut - here's what we know about the truce
More than 2,000 people in Lebanon have been killed in the six-week conflict, with one in five people displaced; Israel says two of its civilians and 13 soldiers have been killed
The ceasefire is very fragile - our security correspondent Frank Gardner explains why
Israel says its troops will remain in a 10km-deep (6.2 mile) "security zone" in southern Lebanon. A man in his 70s standing next to the barrier tells the BBC his house is metres away, but he's not allowed in
Summary
Iran's foreign minister says the Strait of Hormuz is "completely open" to commercial ships for the remainder of the ceasefire
"THANK YOU!" Donald Trump posts on Truth Social - moments later, he says the US naval blockade of Iranian ports will remain in place until a permanent peace deal is agreed
The confirmation came as the UK and France hosted a meeting with dozens of other countries to discuss freedom of navigation in the Strait
Earlier, a 10-day ceasefire between Israel and Lebanon began, with celebrations and fireworks in Beirut - here's what we know about the truce
More than 2,000 people in Lebanon have been killed in the six-week conflict, with one in five people displaced; Israel says two of its civilians and 13 soldiers have been killed
The ceasefire is very fragile - our security correspondent Frank Gardner explains why
Israel says its troops will remain in a 10km-deep (6.2 mile) "security zone" in southern Lebanon. A man in his 70s standing next to the barrier tells the BBC his house is metres away, but he's not allowed in
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Why have oil prices declined today?
A "deal" of any kind with the "Regime"? Does it stay or does it go?
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Petroleum economist
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Re: Why have oil prices declined today?
The Iranians re-opening the Strait of Hormuz more than a week after the initial ceasefire is good news.
The re-opening is the consequence of the Israeli finally living up to their part of the initial deal and implementing a ceasefire in Lebanon. Clearly the Lebanon ceasefire was part of the deal as indicated by the Iranians and confirmed by the Pakistani mediators. With the Israeli complying, the Iranians complied with their part of the deal.
Deals are about mutual trust. After the Iranians announcing the strait re-opening, Trump announced minutes later that Iranian vessels cannot sail through the Strait of Hormuz. This is not helping in building trust.
I believe that WTI dropping to $ 81/bbl, is overdone. There is still a major upset in the world oil balance, which over the next few weeks will be filtering through to tanks levels and refinery activity. There is less than a week left in the current ceasefire, there are mines in the Strait to be removed and there are major facilities to be repaired. $ 85/bbl would be more realistic.
The re-opening is the consequence of the Israeli finally living up to their part of the initial deal and implementing a ceasefire in Lebanon. Clearly the Lebanon ceasefire was part of the deal as indicated by the Iranians and confirmed by the Pakistani mediators. With the Israeli complying, the Iranians complied with their part of the deal.
Deals are about mutual trust. After the Iranians announcing the strait re-opening, Trump announced minutes later that Iranian vessels cannot sail through the Strait of Hormuz. This is not helping in building trust.
I believe that WTI dropping to $ 81/bbl, is overdone. There is still a major upset in the world oil balance, which over the next few weeks will be filtering through to tanks levels and refinery activity. There is less than a week left in the current ceasefire, there are mines in the Strait to be removed and there are major facilities to be repaired. $ 85/bbl would be more realistic.
Harry