Geopolitical de-escalation between the US and Iran is driving a sharp decline in oil prices, as the US halted strikes and Iran agreed to reduce attacks in the region. This suggests a near-term easing of supply risk premia, which could pressure energy stocks and commodity-linked currencies.
•The US halted continued strikes on Iran over the weekend.
•Iran agreed to de-escalate their attacks in the region.
•Oil prices are taking a nosedive as a result of the de-escalation.