Stable Oil Prices Expected Amid Ongoing US-Iran Standoff

Oil prices are expected to remain stable as long as the 'no war, no peace' equilibrium persists between the US and Iran. This stalemate has been ongoing since the original 60-day memorandum of understanding deadline passed.

The US has committed to economic isolation tactics against Iran, while both countries continue to pursue economic pressure strategies. Analysts at Wolfe Research note that neither country is generating enough pressure to force capitulation.

In a recent research note, Wolfe analyst Stephanie Roth calculated that WTI would need to average $120 per barrel through year-end to offset stimulus from individual tax cuts in the OBBB legislation.