Newsflash: The oil price has dipped below the $100 a barrel level.
This follows a report on the Kyodo news service that Iran has offered to reopen the Strait of Hormuz within seven days if the United States takes initial steps toward easing military pressure.
One senior Iranian government official told Kyodo:
“There is a possibility of moving toward an agreement.”
But the official added that Washington must demonstrate “seriousness and commitment” if diplomacy is to advance.
Neil Wilson of Saxo Markets says:
Pressured by its exports grinding to a halt the economic toll is being felt in Tehran and it seems to be pinning hopes on this offer ending the stalemate.
This looks too good an offer for Trump to turn down ahead of his key week with Xi and with polls indicating voter dissatisfaction of his handling the Iran war and economy ahead of the mid-terms, which are looking like the Democrats could take both houses.
As ever with US-Iran chatter and rumours this needs to be taken with a grain of salt but should it hold it’s going to mean crude holds lower, which would take the pressure of bond yields.
