US-Iran nuclear deal optimism drives oil prices to two-week lows despite ongoing Hormuz shipping restrictions.
Oil prices fell below $100 a barrel to two-week lows as optimism over a potential US-Iran nuclear deal outweighed the continued blockade of Hormuz shipping lanes. The drop followed reports that an agreement is 95% complete, though signing remains days away due to unresolved nuclear and sanctions issues.
The People’s Bank of China set the USD/CNY reference rate at 6.8318, above the 6.7880 estimate, while risk assets rallied broadly. The S&P 500 and Nasdaq futures rose 0.4% and 0.6%, respectively, as markets reopened after the weekend.
Despite the positive sentiment, President Trump tempered expectations, stating the blockade would remain until a deal is signed, certified, and ratified. An Iraqi crude tanker cleared the Gulf of Oman, but most ships remain trapped.