Oil prices drop after claims of progress in US-Iran talks
XLE•Gulf shipping traffic remains little changed
Oil prices gained earlier in Tuesday's session after a senior Iranian source told Reuters that Iran wants control over inbound shipping and visibility over outbound traffic through the strait, with the ability to intervene if necessary, as part of a plan being discussed with Oman to reopen the strategic waterway.
"Gulf exports remain under pressure, with Strait of Hormuz transits only marginally improving from extremely depressed levels. The export disruption story is intact, with Iranian attacks on vessels constraining flows," ANZ analysts said.
Shipping traffic at the key Gulf waterways of Bab el-Mandeb and the Strait of Hormuz held largely unchanged at the start of the week.
Goldman Sachs expects Brent crude to trade in an $80-$90-a-barrel range until there is either confirmation of a new U.S.-Iran agreement or a significant escalation in attacks and targets.
