Energy

Oil rises as doubts over US-Iran deal heighten supply concerns - Reuters

Source: Reuters

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DW NOTE

The oil surge reflects the reality that a draft deal is not a deal. Iran's Supreme Leader has not approved reopening the Strait of Hormuz, and after 119 days of blockade the market is pricing what happens if he doesn't. WTI and Brent remain 25% below their peaks despite commercial shipping being effectively closed — that gap is the premium on optimism that has not yet been earned.

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For the first four months of the war between the United States and Israel and Iran, oil traders remained largely bearish. The overwhelming expectation was that the war would end soon—even as July rolled around—and oil flows out of Hormuz would recover. Instead, the world is slipping into a fuel shor

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