Oil Slides but the Real Test Comes This Weekend
Oil markets are fixated on this weekend’s second round of US-Iran talks, with hopes rising for a negotiated end to the Strait of Hormuz’s 45-day blockade. Iran’s announcements that navigation through Hormuz is open come after Trump managed to seal a shaky Israel-Lebanon ceasefire, sending ICE Brent below $90 per barrel again. The negotiations in Islamabad will be oil’s ‘make it or break it’ moment, as any failure would amplify the IEA’s warnings of impending fuel shortages and demand collapse.
With the price dropping to $80 on the Ceaseless Fire, I think you can officially say Demand Destruction has already begun. A lot of the world simply can't afford to buy oil at $100+/bbl. Not getting enough bids.
RE