Scotiabank’s Global FX Strategy team highlights that global benchmark Oil prices are lower, with WTI nearing the psychologically important $90/bbl level and Brent slipping toward the mid-$90s after briefly trading above $100/bbl. They link weaker Oil to a broader risk-on tone, as equities rally and bond yields decline across major markets.

Benchmarks slide toward critical thresholds

"The US/Iran negotiation details have been relatively limited but reporting seems to focus on the reopening of the Strait of Hormuz while offering little on thornier, longer-term issues like uranium enrichment."

"The broader market’s tone is bullish and suggestive of risk appetite with US equity futures pushing to fresh highs as global benchmark oil prices trade down about $5/bbl on the day. "

"WTI is now threatening a break below the psychologically important $90/bbl level and Brent is threatening the mid-$90s after breaching $100/bbl overnight."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)