Brent Crude Falls Below $100 Amid U.S.-Iran Peace Hopes

Brent crude oil futures have dropped below $100 per barrel, influenced by hopes for a U.S.-Iran peace agreement. According to Jin10, Pepperstone strategist Chris Weston noted that if Brent crude prices approach $90, risk assets might revive due to a moderate easing in short-term inflation expectations and a slight reduction in implied rate hike bets for 2027. Weston highlighted that the U.S. core personal consumption expenditures data will be released this week, which will test inflation expectations. The data is expected to show a year-on-year increase, with overall PCE inflation projected at 3.8%, nearly double the Federal Reserve's target. The decline in oil prices could limit the dollar's reaction to the upcoming data. "Dollar positions have become quite tight, and the drop in energy prices leading to lower inflation expectations might prompt some dollar long positions to unwind," Weston stated.