Commerzbank: Even if the US and Iran reach an agreement, the downside potential for oil prices will remain limited.

Golden Ten Data, May 8 – As traders await the latest developments in the peace talks between the US and Iran, oil prices overall remain range-bound. Previous exchanges of fire between the two sides have heightened market concerns over an already fragile ceasefire situation. Analysts at Commerzbank stated: "Even if an agreement is reached, the downside for oil prices may be limited, as the regional situation remains fundamentally unstable, and production and exports within the region can only recover gradually." "In any case, the Strait of Hormuz is likely to remain a critical bottleneck in the short term, which is enough to support the presence of a risk premium." Both major crude oil benchmarks are expected to record declines of more than 7% this week.