Asian stocks set to rise, oil cheaper amid US-Iran talks

World oil prices are declining amid growing expectations of a possible temporary agreement between the US and Iran that could help restore shipping through the Strait of Hormuz. This is reported by Bloomberg, writes UNN.

Details

Investor optimism also had a positive impact on stock markets. Asian exchanges are expected to rise after the US S&P 500 index closed trading at a record level. At the same time, US Treasury bond prices rose, while yields fell.

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West Texas Intermediate crude oil fell another 0.8% – to approximately $75.1 per barrel. Markets reacted to statements by Qatari and US officials about the possibility of reaching agreements on restoring the operation of the Strait of Hormuz.

Investors expect risks to ease

According to Bloomberg, a short-term agreement could normalize the movement of ships through the Strait of Hormuz – one of the most important routes for global oil supplies – and reduce the risks of further escalation in the Middle East.

Markets are reacting to the possibility that the reopening of the Strait of Hormuz could help normalize global oil supplies and reduce pressure on energy prices in the short term. Lower oil prices could ease concerns about inflation

At the same time, Bloomberg emphasizes that even if agreements are reached, they will not guarantee a final end to the conflict and will not resolve all contradictions between Washington and Tehran, including regarding Iran's nuclear program.

Against this backdrop, investors are also monitoring new economic data from the US, which could influence the Federal Reserve's further decisions on interest rates.

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