Standard Chartered: Oil Markets Must Now Price Two Middle East Chokepoints

AI Summary

Oil prices declined after reports emerged that Pakistan is brokering a return to U.S.-Iran nuclear talks amid ongoing conflict and closure of the Strait of Hormuz threatening energy security. Standard Chartered warns that this price pullback may be temporary given the geopolitically sensitive chokepoints in the Middle East.

Oil prices gave up earlier gains on Friday after reports that Pakistan is trying to broker a return to U.S.-Iran nuclear negotiations. China is strongly backing the effort as the conflict and the closure of the Strait of Hormuz continue to threaten its energy security and weigh on its economy. Brent crude for September delivery fell 4.4% to trade at $96.36 per barrel at 1.35 pm ET while WTI crude for September delivery was down 3.6% to change hands at $88.86/bbl. However, Standard Chartered says the latest pullback may prove temporary as Middle…