OIL WEEKLY, EQNR, HBR, EU ETS: EU Energy Sector Specialist Commentary Oil - Oils - Utilities - Infrastructure

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OIL WEEKLY, EQNR, HBR, EU ETS: EU Energy Sector Specialist Commentary Oil - Oils - Utilities - Infrastructure

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COMMODITIES - commodities leap as Iran/US hostilities escalate again

- Reports on Friday night and Sat morning signaled deescalation, with Iran reportedly preparing a statement committing to full

Hormuz access for commercial ships, blaming strikes last week on “rogue elements” of the IRGC. Negotiations took place in

Oman on Saturday, with the goal of achieving a permanent solution for the waterway.

- However, then on Sat evening Iran fired on a commercial ship and declared Hormuz closed, prompting the US to launch a round

of strikes, its third campaign in the last week, and for Iran in retaliation to attack countries throughout the Middle East including

the UAE for the first time since May and Qatar since April, as well as Oman and Bahrain

- Iran said that diplomacy had been “rendered futile” whilst Trump said America was “beating up” Iran over its attempt to re-close

the Strait. Recent press articles have noted that Hormuz control is now the biggest priority for the Iranian regime. The US said the

Strait remained open, Iran that it was again closed. All of the six commodity carriers that transited Hormuz on Sunday did so with

their transponders turned off, according to preliminary Kpler data analysed by Bloomberg News.

- China’s crude imports are expected to recover as the country relaxes fuel export curbs and raises run rates, with analysts

forecasting a return to strategic stockpiling later this year.Chinese refiners have begun buying cheap Middle Eastern crude, with