Oil Slides as Tensions Ease With US-Iran Fighting Paused

Summary

Bloomberg's Tyler Kendall reports that a pause in US-Iran fighting has created room for diplomacy, though the White House keeps escalation options open. He cites reports that a top US commander advised against further strikes due to limited effectiveness and that Washington may be concerned about weapon stockpiles. Meanwhile, Strait of Hormuz vessel traffic remains depressed at conflict levels, with Iran still forcing ships to turn around, keeping risk elevated even as oil prices slide.

• US and Iran paused direct attacks for a third consecutive day, allowing diplomatic efforts.
• A US Middle East commander reportedly advised against further strikes as they had reached their limit of effectiveness.
• The New York Times reports possible US concern over diminishing weapon stockpiles.
• Bloomberg Economics estimates the US naval blockade costs $30-$45 million per day.
• Vessel transits in the Strait of Hormuz remain at just 6-12 per day, unchanged from the period of active strikes.
• Iranian state media says the IRGC forced at least six ships using the US-coordinated route to turn around.
• The pause helped push oil prices lower and lifted global stock and bond markets.