Iran Deal Hopes Send Oil Prices Tumbling

Oil prices have taken a hit due to growing hopes of a potential deal between the US and Iran. This development has raised expectations that increased Iranian oil exports could soon enter global markets, leading to downward pressure on crude prices. Brent crude and WTI prices have both fallen as a result, with Brent down from $72.24 to $71.54 and WTI down from $59.73 to $58.44 per barrel.

The potential for increased Iranian oil supply is consistent with scenarios where oil prices could remain under pressure, at least in the short term. Markets suggest that recent developments are consistent with a decrease in the probability of crude oil reaching a new all-time high by September 30.

Meanwhile, the Japanese yen has seen a sharp increase following intervention efforts by authorities aimed at supporting the currency, which has been under pressure against the US dollar.