U.S.-Iran Ceasefire Talks Push Oil Prices Lower as Supply Risks Persist
Only 10 commodity vessels crossed the Strait of Hormuz Wednesday, below the recent daily average of about 17.
Oil prices fell Friday as possible U.S.-Iran ceasefire talks improved market expectations, but fragile shipping through the Strait of Hormuz kept supply risks in focus for crypto and broader markets.
Discussions in New York have included a phased path to end the conflict. The outline includes Iran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran.
Physical supply remains vulnerable. Ten commodity vessels crossed the strait Wednesday, up from seven the previous day but still below the average of about 17 vessels a day over the prior 10 days.
Markets also remained alert to escalating Houthi attacks on Saudi Arabia, which could disrupt supplies from the major Middle East producer. Diplomatic progress may reduce some of oil’s geopolitical premium, but shipping activity points to continued fragility while the talks develop.
