Oil: Ceasefire hopes keep prices steady – Danske Bank

Danske Research Team notes that Oil prices held around USD 95 per barrel as markets focused on prospects for a ceasefire between the US and Iran and a potential reopening of the Strait of Hormuz. The bank highlights that expectations for normalisation of supply are supporting a stable Oil price rather than driving fresh gains.

Prices stable on supply normalisation hopes

"Oil kept steady yesterday at around USD 95/bbl as markets continued its optimism that the resumption of talks between the US and Iran will lead to an eventual reopening of the strait and normalisation of the supply situation."

"That is despite enforcing a shipping blockade, that so far appears to have made nine ships turn around in the Strait of Hormuz and as traffic through the Strait remains subdued compared to pre-war levels."

"US-Iran talks may resume in Pakistan this weekend after previous discussions stalled, although no date has been set yet. The Trump administration expressed optimism on Wednesday about resolving the conflict; President Trump stated in an interview with Fox news that the Iran war is "almost over"."

"In the Middle East, Israel's cabinet is discussing a potential ceasefire deal with Lebanon, which could be announced soon according to Lebanese officials. Ending the Lebanon conflict is seen as important for broader peace talks between the US and Iran. However, as Hezbollah is not part of the talks, it remains unclear if the group would comply with a ceasefire."

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