A Made-In-Japan Rally
From tensions to technical talks — an uneasy calm to end the week
Key Takeaways
• Back to An Oil Glut?: Oil prices have retreated on renewed hopes that the U.S. and Iran will now patch things up — indeed, reports that Iran’s foreign minister spoke with other regional leaders and Pakistani mediators were the catalysts for yesterday’s relief rally in both stocks and bonds. Any return to negotiations will likely create the conditions for a return to an oversupplied crude oil market, especially now that the IEA just reported that world oil demand is set for its first annual decline since the 2020 pandemic recession year.
