Cooling US-Iran tensions push Brent crude to $74.76, fueling bets the ECB will ease policy as the euro slides.
The euro fell to a one-year low of $1.135 against the dollar Wednesday, down from $1.165 in early April. The decline follows a conditional ceasefire between the US and Iran, easing tensions that had previously supported oil prices.
Brent crude for August delivery dropped to $74.76 per barrel, reflecting reduced geopolitical risk in the Strait of Hormuz. Markets are now pricing in a higher probability of European Central Bank rate cuts as energy costs stabilize.
The shift in sentiment comes as traders reassess the ECB’s policy outlook amid softer inflation pressures and a weaker currency.