Brent Falls Below $80 as Strait of Hormuz Risk Premium Fades
Oil prices slipped as easing US–Iran tensions reduced the risk premium for Strait of Hormuz transit, according to OCBC's Christopher Wong.
Brent crude has dipped below $80 per barrel as the risk premium associated with the Strait of Hormuz diminishes. OCBC analyst Christopher Wong attributes the move to a reduction in US–Iran tensions, leading markets to price in a high probability of normalized passage through the key waterway.
The easing of geopolitical risks has prompted a reassessment of supply disruption fears. Brent's trajectory is now expected to stabilize around current levels, according to Wong's assessment.
Source: FXStreet Forex News