Crude prices close to their ‘lows’

A US-Iran MoU is in place and negotiations are underway. The path was never going to be smooth, and Israeli attacks on Lebanon at the very start of the process highlight the challenges ahead. However, the initial talks on ending the war and allowing future nuclear inspections are encouraging. The latest Brent and WTI crude futures markets appear to have more or less priced in a conclusion to the war and the reopening of the Strait of Hormuz. Prices may fall a little further on positive headline news, but from here the downside potential looks relatively limited.