FINWIRES · TerminalLIVE
FINWIRES

Update: WTI Oil Settles Below US$100 As U.S. And Iran Fail To Reach A Deal; U.S. Promises To Blockade Iran

-- West Texas Intermediate (WTI) crude oil tested the US$100 per barrel mark on Monday before falling back after the United States said it will blockade Iran's ports after weekend peace talks in Pakistan ended without an agreement to end hostilities.

WTI crude oil for May delivery closed up US$2.51 to settle at US$99.08 per barrel, after earlier touching US$105.63, while June Brent oil was last seen up US$3.92 to US$99.12.

Direct and indirect talks between Iran and the United States failed to reach an agreement, with Iran refusing to agree to U.S. demands that it end its uranium-enrichment program. In response to the unsuccessful negotiations, the United States said it will blockade Iran's ports and block any ships paying Iran for passage through the Strait of Hormuz. Iran responded by threatening attacks on ports in the Persian Gulf and Sea of Oman, according to the Wall Street Journal.

Failure to reach a deal leaves the Strait of Hormuz closed to tanker traffic, continuing to block 20% of daily oil demand supplied by Persian Gulf nations. The largest-ever supply shock likely to be magnified by the oncoming high-demand summer season.

"Once again, high stakes negotiations between the US and Iran deadlocked over Washington's zero uranium enrichment demand, setting the stage for further escalation in the 6-week war and prolonged supply disruptions in advance of summer driving season," Helima Croft, Head of Global Commodity Strategy and MENA Research at RBC Capital Markets, wrote.

"In the absence of a negotiated deal, the White House is essentially left with the option of a strategic retreat that would leave Iran with de facto control over the Strait or a military escalation aimed at

eliminating the Tehran tollbooth."

Related Articles

Research

Research Alert: CFRA Maintains Buy Rating On Shares Of Quest Diagnostics

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We keep our 12-month price target at $235. This is based on a forward P/E of 21.9x our 2026 EPS estimate, a premium to DGX's three-year forward average of 16.8x due to our view of strengthening sales and earnings growth, backed by higher health care utilization trends and some regulatory relief due to postponement of lab reimbursement cuts until at least 2027. We think lab testing providers remain a relatively well-positioned area within health care given lower policy risks, supportive testing demand, and attractive earnings growth potential. On a compounded annual basis from 2025-2028, we expect near 8% EPS growth, raising our 2026 EPS to $10.73 from $10.60 and 2027 EPS to $11.50 from $11.42. We also anticipate additional smaller M&A opportunities, along with healthy dividend increases (recent 7.5% boost; shares yield 1.7%) as cash flow generation remains supportive over the near term.

$DGX
Research

Research Alert: Pega: Q1 Results Miss, But Strength In Pega Cloud Offsets

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:PEGA reported total revenue of $430M, missing consensus by $37.2M and declining 10% Y/Y, while non-GAAP EPS of $0.46 missed by $0.23 and fell 39% Y/Y. However, Pega Cloud revenue surged 36% Y/Y to $205M, now representing 47.7% of total revenue and validating the cloud transition thesis. Pega Cloud annual contract value (ACV) acceleration remains the standout metric, growing 29% Y/Y to $906.7M and accelerating from 23% growth in Q1, demonstrating continued strong demand for the company's AI workflow automation platform. Total ACV grew 12% Y/Y to $1.62B, with backlog increasing 16% Y/Y to $2.01B providing revenue visibility. We believe the robust cash flow generation of $206.5M in free cash flow and a solid balance sheet with $474M in cash provides financial flexibility for continued AI investment. Despite near-term profitability pressure, we expect the sustained Pega Cloud momentum and strong ACV growth to support the business transformation.

$PEGA
Asia

Air New Zealand CFO to Resign

Air New Zealand (ASX:AIZ, NZE:AIR) said that Chief Financial Officer Richard Thomson has resigned, effective Aug. 28, according to a Wednesday filing with the New Zealand bourse.The airline has started the process of searching for a new CFO, the filing added.

$ASX:AIZ$NZE:AIR