Analyst: Market Closely Watches US-Iran Negotiations, Oil Prices Remain at Risk of High Volatility
According to Golden Ten Data on May 20, both the US and Brent crude oil prices fell by over 2% on Wednesday. The decline was attributed to US President Trump reiterating that the war with Iran would soon end. However, as supply disruptions in the Middle East persist, investors remain cautious about the potential results of peace talks. Emril Jamil, Senior Oil Research Analyst at London Stock Exchange Group, stated that as the market assesses the geopolitical situation, benchmark oil prices have softened due to the possibility of an agreement. However, even if an agreement is reached, oil prices may still have room to rise since supply is unlikely to return to pre-war levels immediately. Toshitaka Tazawa, analyst at Fujitomi Securities, indicated that since the US stance changes daily, investors are closely monitoring whether the US and Iran can genuinely find common ground and reach a peace agreement. Considering that the US may strike Iran again and even if a peace agreement is achieved, crude oil supply will not quickly return to pre-war levels, oil prices may continue to remain high.
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