Brent crude futures declined to around $79 following reports that the United States, Iran, and Oman are nearing a temporary agreement to reopen the strategically vital Strait of Hormuz. This development has eased some concerns over potential supply disruptions in the oil market, according to FX Street.
Rabobank also highlighted that the prospect of this deal has contributed to the recent drop in Brent futures prices, reflecting market optimism about improved regional stability and uninterrupted oil flows.
For Japanese investors, who rely heavily on Middle Eastern oil imports, any move toward stabilizing the Strait of Hormuz could ease energy supply risks and impact FX and equity markets sensitive to global oil price fluctuations.