Brent: Diplomatic hopes support pullback – Deutsche Bank

Deutsche Bank strategists note that Brent briefly fell below $100/bbl as hopes for a diplomatic solution in the Middle East weighed on oil prices. They link the pullback to positive headlines around potential US-Iran talks, while renewed sanctions risks on Iran helped limit the decline and supported a rebound toward $101/bbl.

Crude retreats on diplomacy hopes

"Markets have put in a strong performance over the last 24 hours, with Brent crude oil (-3.40%) briefly falling beneath $100/bbl again as hopes grew for a diplomatic solution in the Middle East."

"Brent is a little above $101/bbl this morning but net net the week has started more optimistically."

"Although oil is back up a little overnight, Brent fell back beneath $100/bbl yesterday for the first time in nine trading sessions before closing at $100.34/bbl."

"In part, that followed more positive headlines over the weekend, including comments from President Trump to Fox News that he would be open to meeting Iran’s President at the UN this week. So that raised hopes about some kind of deal between the two sides, and it helped drive a big reduction in energy prices across the board."

"Even though there are hopes of diplomatic progress, the rise back in oil overnight seems to be in part due to Bessent suggesting that all Iranian airlines will be shut down from tomorrow with anyone providing fuel, landing services etc., shut out of the dollar system."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)