Oil Traders Stay Bearish Despite Deepening Middle East Disruptions

AI Summary

Oil traders remain bearish despite escalating Middle East conflict and war expansion to the Red Sea, anticipating a quick peace deal. Brent crude and WTI prices fell below $80 and $75 respectively amid disputed reports of US-Iran peace talks and negotiations over Strait of Hormuz control with Oman.

Despite continued hostilities in the Middle East and an expansion of the war to the Red Sea, oil traders have remained largely bearish on the commodity, betting on a quick peace deal—and they might get a nasty shock. Earlier this week, Brent crude sank below $80 per barrel, and WTI dropped below $75, after President Trump said peace talks between the United States and Iran had resumed, even though Iranian officials denied there were any talks in progress. However, Iran is negotiating a deal about control over the Strait of Hormuz with Oman,…