Oil Prices Plummet Amid Iran Deal Hopes
Risk appetite has improved in recent sessions despite rate hike expectations weighing on Australia's ASX 200. Oil prices extended their decline towards $80/bbl amid Iran-related optimism, with US oil FUTs and bond yields dropping.
A report from Al Arabiya suggested the US offered to halt its 'siege' and lift sanctions on Iran in exchange for the reopening of the Strait of Hormuz and an end to proxy attacks. This was reportedly met with a proposed framework for a new corridor, including joint mine-clearing and future management of the Strait.
Iranian Foreign Minister Araghchi noted that regional solutions were stressed in talks with Pakistan and Oman counterparts. US Secretary of State Rubio informed foreign counterparts that 'for the time being' the US is not expected to initiate new strikes against Iran, shifting strategy from strikes to sanctions.