Snapshot: Brent Crude futures are trading sharply lower, extending overnight losses, currently near $98/bbl. The primary driver is growing optimism surrounding a potential US-Iran peace deal, raising the prospect of increased oil supply and easing geopolitical tensions in the Strait of Hormuz.
- Watch for a break below $97/bbl, opening the door to further downside.
- Focus on official commentary from US and Iranian officials, as conflicting signals could trigger volatility.
Bias into NY: Bearish. Continued positive headlines regarding the Iran deal are likely to weigh on Brent Crude, potentially pushing the price towards $95/bbl. A strengthening USD, with the broad index at 119.28, adds further pressure.