Global oil prices have dropped sharply, while U.S. stock futures rose amid optimism regarding the potential reopening of the Strait of Hormuz following negotiations between the U.S. and Iran. This was reported by Bloomberg, according to UNN.
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At the start of trading, Brent crude fell by more than 4%, while S&P 500 index futures rose following a record-high market close late last week. Risk-sensitive currencies, including the Australian dollar and the South African rand, also strengthened.
Markets react to negotiations over the Strait of Hormuz
According to Bloomberg, U.S. officials stated that Washington and Tehran are nearing an agreement to reopen the Strait of Hormuz and resume oil supplies.
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At the same time, the Iranian agency Tasnim reported that the negotiations could collapse due to disputes over the unfreezing of Iranian assets.
Financial markets seem to be giving these reports the benefit of the doubt for now
Amid the negotiations, signs of a partial resumption of shipping through the Strait of Hormuz have emerged. According to Iranian media, 33 vessels, including oil tankers and container ships, passed through the route in the last 24 hours. Meanwhile, ANZ Bank analysts warn that despite the drop in oil prices, market volatility may persist due to the uncertainty of the negotiations.