Oil falls on US-Iran deal hopes to reopen Strait of Hormuz
Oil prices fell in early Asian trade as traders weighed the prospect of a US-Iran agreement to reopen the Strait of Hormuz.
The decline came despite a backdrop of renewed hostilities, with Tehran signalling that the latest strikes would not derail ongoing negotiations.
Options data shows investors expect prices to ease over the next three months but with unusually low conviction, reflecting the high uncertainty around any deal, with a 37% implied chance of oil above $100 in three months.