Oil prices fell and stocks rose on optimism that the US and Iran were nearing a lasting peace deal, but analysts warned that huge challenges remained for the global energy market.
The effective closure of the Strait of Hormuz has curtailed flows of much-needed fossil fuels, leading to shortfalls across Asia and Europe, which are dependent on imports via the waterway; an agreement between Washington and Tehran is seen as essential to reopening it.
But even if a deal were reached, the energy market is in trouble: Chevron, Exxon, and Morgan Stanley all warned that oil inventories were nearing troublingly low levels, and high insurance rates for ships passing through the strait have barely budged.
