Oil: Ceasefire confusion keeps supply risks elevated – Danske Bank

FXStreet Insights Team FXStreet

Danske Research Team notes that Brent crude dropped sharply on the initial US-Iran ceasefire headlines but remains sensitive to Middle East supply risks. The Strait of Hormuz is still blocked, with Iran only indicating a possible reopening later this week. The analysts highlight that reported infrastructure damage looks manageable so far, yet markets remain focused on Oil flows.

Brent pares losses as risks linger

"Global markets breathed a sigh of relief as Brent crude fell 14% to USD 95/bbl and equities surged to one-month highs following President Trump's announcement of a two-week ceasefire late Tuesday."

"The Strait of Hormuz remains blocked, though Iran has indicated it could reopen later this week subject to further agreements."

"Brent futures also edged up slightly to USD 97/bbl."

"The oil market has reacted with relative calm, suggesting that reported damages may be manageable for now."

"Markets are closely watching for signs of increased traffic through the strait in the coming days."

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

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FXStreet Insights Team

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