Snapshot: Brent crude is trading at 103.09, down 4.31% on the session, as reports surface of a potential US-Iran deal to ease tensions. These reports have overshadowed any underlying supply concerns. Watch the 08:15 ET ADP Non-Farm Employment Change for potential directional cues.
- Key support lies at the overnight low of 96.77.
- Risk remains that the market has further to price on this de-escalation, with geopolitical risk premia still embedded.
Bias into NY: Bearish. The market is likely to test lower as traders price in the reduced geopolitical risk, potentially pushing Brent towards the 95.00 handle. DXY weakness is offering only limited offset.