Brent: War headlines drive sharp rebound – Deutsche Bank

Deutsche Bank’s Jim Reid and team note that Brent Oil has rebounded strongly after fresh US defensive strikes and new sanctions on Iran, which reversed yesterday’s sharp decline to a one‑month low. They highlight that Iranian and US statements on a reported interim peace proposal for the Strait of Hormuz have been contradictory, keeping Oil volatility elevated and linked closely to evolving geopolitical headlines.

War risks keep Brent highly volatile

"One skill required in this job at the moment is adaptability as the tone has all changed in the last couple of hours with Oil back up and equities down after the US carried out another series of defensive strikes and imposed sanctions preventing Iran from profiting from Strait of Hormuz traffic."

"This has led to Brent rallying +3.92% this morning to $97.99/bbl after falling -5.31% yesterday and to a one-month low of $94.29/bbl."

"The main one yesterday came from Iran’s state TV, who reported on an unofficial draft for an interim peace deal."

"According to them, this proposal would see maritime traffic through the Strait of Hormuz return to normal within a month, while the US would lift its blockade on Iranian ports."

"However, we then heard from the White House later on, who said this report was a “complete fabrication”, which dampened hopes for an imminent deal."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)