Citigroup Commodities Chief Says Oil Will Stay Volatile Until Iran-Trump Outlook Clears

Commerzbank says both crude benchmarks are heading for weekly losses of more than 7% as traders watch U.S.-Iran peace talks and the Strait of Hormuz risk premium.

Summary

Oil prices stayed rangebound as market participants awaited updates on U.S.-Iran peace talks. Commerzbank analysts said both major crude benchmarks are set for weekly losses of more than 7%, even as instability and concerns over the Strait of Hormuz continue to support a geopolitical risk premium in prices.

Terms & Concepts
  • Strait of Hormuz: A narrow and strategically important waterway that handles a large share of global oil shipments.
  • oil price volatility: Frequent and often sharp price changes driven by supply, demand, or geopolitical uncertainty.