Bryn Jones, head of fixed income at Rathbones Asset Management, said: “Big news overnight is the big fall in oil prices with potential ceasefire. Oil is now well below $100 dollars a barrel.
“Though refining margins are still at $30, so I can’t see this reducing pump prices in the short term with double choke points in Strait of Hormuz and the Red Sea.
“Considering Iran’s nuclear program and negotiation chips have still not been removed, and I suspect some are still thinking that regime change is possible, the ceasefire lasting might take a leap of faith.
“Traffic through Hormuz remains a mess while the conflict has continued into the Red Sea, where Iran-backed Houthi forces allegedly launched attacks against Saudi energy infrastructure around Jizan and Yanbu over the weekend.
“This prompted retaliatory Saudi strikes. However, having said this, UST rallied overnight with some faith in the ceasefire.”
Contact details are available to account holders.
Create a free account to get in touch with this expert.