[MARKET UPDATE] Pressure seen in the crude complex, DXY & upside in US equities after a report suggests Iran is drafting a protocal with Oman for Strait of Hormuz traffic

The news of Iran drafting a protocol with Oman regarding Strait of Hormuz traffic has introduced upward pressure on US equities while simultaneously applying downward pressure on crude oil prices and the DXY.

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[MARKET UPDATE] Pressure seen in the crude complex, DXY & upside in US equities after a report suggests Iran is drafting a protocal with Oman for Strait of Hormuz traffic

Iran reportedly aims to respond to the Karaj Bridge attack by targeting key strategic stations, such as the Port of Haifa, via Fars

Iran reportedly drafts a protocol with Oman for the Strait of Hormuz traffic, via IRNA

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Context

This suggests a potential easing of geopolitical tensions, which can be interpreted as a risk-on environment, benefiting stocks but negatively impacting energy prices given the significance of the Strait for oil transport and supply stability.

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