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Brent: Crude breaks lower on US-Iran optimism – MUFG

MUFG’s Lloyd Chan reports that Brent has fallen below earlier May lows, with prices dropping to around $94 per barrel. He attributes the move to growing optimism over a potential US‑Iran deal, though he stresses that uncertainty over an imminent breakthrough remains. Reports of Trump’s dissatisfaction with negotiations and subdued Strait of Hormuz tanker traffic underscore lingering supply‑risk concerns.

Oil pressured by US-Iran deal hopes

"In energy markets, Brent crude has broken lower to $94.29/bbl, falling below the 7 May low of $96.03/bbl."

"This move likely reflects growing optimism around a potential US-Iran deal."

"However, there remains uncertainty of an imminent breakthrough."

"Reports suggest that Trump was “not satisfied” with the progress of negotiations with Iran, while tanker traffic through the Strait of Hormuz is still quite subdued."

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

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The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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