Oil Extends Decline as Iran Tensions Ease and Hormuz Traffic Recovers
- Brent and WTI slid for a second session as indirect US-Iran talks in Doha fueled hopes of a durable ceasefire and tanker traffic through the Strait of Hormuz began to recover (Bloomberg).
- US crude grades shed their Iran-war premium, with the risk premium collapsing faster than spot prices, signaling traders are repositioning for an oversupplied market rather than a geopolitical disruption.
- Lower energy is a tailwind for the inflation outlook ahead of Friday's BLS jobs report, compounding the dovish message Fed Chair Kevin Warsh delivered at the ECB Forum.