Key insights
- Brent oil prices rose above $110 due to reports suggesting Iran can withstand a US blockade for months, diminishing prospects of a near-term US-Iran deal. This implies continued supply constraints in the oil market, potentially contributing to inflationary pressures and impacting energy sector performance in the US.
Trump has been saying for weeks that Iran would collapse any day now but according to NBC Iran could actually sustain the US blockade for months since Iran is still bypassing it with it's "dark fleet" and they also can refine alot of their oil domestically and route it out via other ways.
In other words, don't expect a US-Iran deal anytime soon.