Snapshot: WTI Crude has plunged below $75 per barrel, hitting its lowest levels since early March as the market digests news of an interim US-Iran agreement to reopen the Strait of Hormuz. This geopolitical breakthrough paves the way for major Gulf producers to restart millions of barrels of halted output, fundamentally shifting the global supply outlook. Ahead of the NY bell, traders are monitoring the 08:30 ET US Philly Fed and claims data for any signs of demand-side resilience.
- Physical market tightness remains a critical near-term buffer, with Cushing inventories sitting at a depleted 20 million barrels despite the paper-market liquidation.
- The hawkish tone from yesterday’s FOMC policy update continues to act as a secondary weight on the broader commodity complex.
Bias into NY: We are sellers on rallies, targeting $73.50 as the return of Persian Gulf supply dominates near-term flows, with a potentially firmer USD post-08:30 ET data acting as a secondary headwind.