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Crude Oil Prices Hold Steady as Investors Digest Supply Impacts of U.S.-Iran Peace Deal

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Crude oil prices were little changed as investors continued to digest potential impacts of a U.S.-Iran peace deal and a reopening of the Strait of Hormuz.

Brent crude at last look edged up 0.3% to US$79.16/barrel and West Texas Intermediate crude was up 0.2% to $76.19/barrel. The memorandum of understanding between the U.S. and Iran has not been made public, but details began to emerge Tuesday, with a U.S. official saying Iran would be allowed to sell oil upon signing, Reuters said in a Wednesday report.

"The current baseline is that the Strait of Hormuz will reopen and that ships will begin transiting through this critical chokepoint in both directions," Reuters quoted PVM Oil analyst Tamas Varga as saying. "The gradual resumption of oil flows, however slow, will materially affect the oil balance."

The International Energy Agency also forecast a significant supply overhang in 2027, with global supply set to surge by 8 million barrels per day and demand rising by only 2 million bpd.

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Crude Oil Prices Hold Steady as Investors Digest Supply Impacts of U.S.-Iran Peace Deal | FINWIRES