Fed's First Interest Rate Meeting Under Warsh Begins as Crude Oil Trickles Lower

A U.S.-Iran memorandum of understanding is reportedly moving toward Friday signing, potentially easing market concerns about inflation by reducing geopolitical risk around crude supply. Kevin Hincks expects oil prices to slide further if the Strait of Hormuz reopens, which would be supportive for broader risk assets and disinflation. The news is primarily relevant for energy markets and inflation expectations.

Analysis

A U.S.-Iran memorandum of understanding is reportedly moving toward Friday signing, potentially easing market concerns about inflation by reducing geopolitical risk around crude supply. Kevin Hincks expects oil prices to slide further if the Strait of Hormuz reopens, which would be supportive for broader risk assets and disinflation. The news is primarily relevant for energy markets and inflation expectations.