Oil Reverses Course, Sparks Glut Fears as Supply Unfreezes
Oil prices slide after a US–Iran peace deal frees supply, reviving fears of a global glut even as demand remains weak. Brent trades near $70 and the physical market shows unusual weakness as Hormuz flows resume and Iranian crude returns under sanctions waivers. China’s demand remains tepid, U.S. SPR releases slow, and contango in futures suggests storage builds. The near-term outlook hinges on whether the peace deal holds, if OPEC+ curbs output to defend prices, and when Chinese demand rebounds.
