Opec and allies agree to hike output as Hormuz traffic begins recovery

Crude prices are stable after last week’s drop below pre-Iran war levels, supported by Opec+ agreeing to increase production. ECB Governing Council member Gabriel Makhlouf said the lower oil prices are unlikely to provide relief to inflation yet. Overall, this is a modest near-term headwind to energy-driven inflation expectations rather than an immediate macro shift.

Analysis

Crude prices are stable after last week’s drop below pre-Iran war levels, supported by Opec+ agreeing to increase production. ECB Governing Council member Gabriel Makhlouf said the lower oil prices are unlikely to provide relief to inflation yet. Overall, this is a modest near-term headwind to energy-driven inflation expectations rather than an immediate macro shift.