Oil Prices Soar Amid Growing Doubts Over US-Iran Deal
Oil prices have continued to rise on concerns about a potential deal between the US and Iran, reaching a one-week high as traders became more pessimistic about the situation. The Strait of Hormuz remains closed due to escalating tensions, with no resolution in sight.
The global inflation outlook is also uncertain, weighing down market sentiment. Gold prices retreated from their two-month peak ahead of consumer price data due on Wednesday.
Markets are grappling with the prospects of a detente, but analysts say any form of resolution would not be the end of this story. Ron Albahary, chief investment officer at LNW, said 'markets are misguided in thinking that any form of resolution is the last chapter of this story.'
US President Donald Trump has responded to Iranian conditions with his own proposal, calling for Iran to pay compensation for those killed in wars, attacks, and protests. This move may complicate efforts to reopen the Strait of Hormuz.