[MARKET UPDATE] Energy benchmarks pressured, Brent falls c. USD 0.50/bbl as US and China agree that Hormuz must remain open, agreed Iran can never have a nuclear weapon

The agreement between the US and China to ensure the Strait of Hormuz remains open, alongside a commitment on Iran’s nuclear capabilities, is placing downward pressure on energy benchmarks, notably Brent crude.

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This suggests a stabilization of geopolitical tensions that could allow for increased supply flow, thus impacting prices in the near term. Watch for further reactions in the commodities space as risk perceptions adjust.

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