Shou Chuang Futures: US-Iran Ceasefire, Oil Prices Plummet

This morning, Iran and the US accepted Pakistan’s proposal for peace talks, reaching an agreement to cease hostilities for two weeks, and both sides entered the negotiation phase. Iran’s Foreign Minister Araghchi said in the early hours of the 8th local time that if attacks on Iran stop, ships will be able to pass safely through the Strait of Hormuz within the next two weeks. With negotiations imminent, oil prices plunged, but it should be noted that the fundamentals have not materially improved. The EIA expects that in April, the Gulf region will see production cuts of 9.1 million barrels per day. In addition, US-Iran negotiations still face many disagreements, and uncertainty remains. (First Futures)