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2026-05-27 20:56:12
[Oil Prices Plunge Nearly 6%, Triggering Safe-Haven Demand? German Bonds React Mildly; Iran's Control of Straits Navigation Rights Becomes New Uncertainty] ⑴ Oil prices fell further after Iranian state television reported a preliminary informal framework draft of a US-Iran memorandum of understanding. Brent crude fell 5.7%, and WTI crude fell 4.75%. The draft includes the withdrawal of US troops from the region surrounding Iran and the lifting of the blockade, Iran's commitment to restore commercial navigation in the Strait of Hormuz to pre-war levels within a month, and the management of ship traffic and routes in the strait being handled jointly by Iran and Oman. ⑵ Oil prices are reacting to the prospect of normalized navigation, but the issue of Iranian-led management and control of shipping routes has raised new concerns. What this means, the extent of traffic control, and the applicable fees remain uncertain. ⑶ Near-month Brent crude has fallen below $95, but German bonds have not shown a significant positive reaction. June German bond futures contracts were flat, remaining largely within Tuesday's trading range.
