Oil Prices Stay Steady Under $80 on Optimism Over Hormuz

Oil prices have steadied as Brent crude, the international standard, edged less than 1% higher to $79.43 per barrel after falling more than 5% on June 16. The price stability comes amid optimism that Iran will quickly open the Strait of Hormuz if a tentative deal with the U.S. to end the war is signed on June 19. According to the leaked details of the interim U.S.-Iran deal, the U.S. would secure at least $300 billion to rebuild Iran after the war and work to end all American and United Nations sanctions imposed on Tehran if a final agreement addressing Iran’s nuclear program is reached. Benchmark U.S. crude inched up 60 cents to $76.65 a barrel. The agreement between Iran and the US lays out the terms of the ceasefire between the bitter rivals, the reopening of the Strait of Hormuz, some financial relief for Iran, and a reiteration from Tehran that it will never produce a nuclear weapon. The Federal Reserve is expected to keep its benchmark interest rate unchanged despite pressure from President Donald Trump to cut rates. Worries over higher prices due to the Iran war may lead the Fed to stand pat, since lower rates could fuel higher inflation. In equities trading, chip companies saw their shares return to gains after widespread losses a day earlier, with Micron rising 3.5% and Intel jumping 3.1%. Asian stocks were mostly higher, with markets in Japan and South Korea setting new records.