Oil slides as US-Iran diplomacy eases supply fears
Crude prices are falling as market concerns over supply disruptions ease, driven by diplomatic progress between the US and Iran. The development suggests reduced geopolitical risk premium in oil markets, though the durability of the diplomatic track remains uncertain.
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Saudi East-West Pipeline Resumes, Hormuz Flow Continues Amid US-Iran Stalemate
Saudi Arabia has resumed crude flow through its East-West pipeline and restarted oil loadings at Yanbu following repairs from a drone attack, restoring approximately half of its capacity. This action, coupled with continued, albeit clandestine, transit through the Strait of Hormuz, has eased immediate supply concerns. However, oil prices remain supported by the persistent US-Iran diplomatic stalemate regarding the full reopening of the Strait of Hormuz, with Tehran confirming Washington rejected its latest proposal.