Oil prices fell by more than four percent on Monday (November 2) after a report that US President Donald Trump wants to negotiate with Iran raised hopes of ending the Middle East war, AFP reported from London.
What moved the market
The Axios news outlet reported that US Vice President JD Vance had sent a letter to Iranian national security chief Mohsen Rezaei about possible new talks, described as the highest-level move in months. Crude futures were also weighed down by Iran saying it is ready to reopen the Strait of Hormuz within two days if the United States agrees to end the war on all fronts, among other conditions. Shares of energy majors dropped as gas prices also fell, while many other sectors gained from cooling fuel costs.
Analysts stay cautious
Arne Lohmann Rasmussen of Global Risk Management said the signals from Trump may be tactical ahead of the US midterm elections, noting that attacks on shipping in the Strait of Hormuz continue and that his firm maintains a higher-for-longer outlook for energy prices.
Impact on Malaysia
The early reaction in Malaysia was modest. Malay Mail reported on Tuesday that the ringgit edged slightly higher at the opening, at 4.0690 against the US dollar compared with Monday's close of 4.0695, as the US-Iran talks fuelled hopes that the Strait of Hormuz could reopen. Higher fuel costs have also been hurting airlines elsewhere: Ryanair said on Monday its second-quarter net profit fell six percent as the war pushed up fuel costs.
Sources: Malay Mail (AFP) - Oil prices sink on US-Iran war hope ahead of midterms | Malay Mail - Ringgit edges higher as US-Iran talks fuel hopes
No comments:
Post a Comment