A planned reopening of the Strait of Hormuz could ease oil supply concerns as crude prices dip below key support levels.
The US and Iran have agreed to reopen the Strait of Hormuz within approximately 30 days, clearing mines and waiving tolls for passing ships. A 60-day ceasefire extension is also part of the deal, though nuclear negotiations and sanctions relief remain unresolved hurdles.
Crude oil prices fell to a low of $89.41, breaking below an upward trend line, with the next support level at $88.66, the May low. The agreement follows heightened tensions, including reports of potential US support for Israeli military actions against Hezbollah in Lebanon.
Despite US stock market closures, e-mini S&P futures rose 0.98% to 7564.50, nearing the session high of 7569.75, reflecting cautious optimism over easing geopolitical risks.