Daily Oil Fundamentals

Strait Jacket

03 Jun 2026

Strait Jacket

The Persian Gulf is akin to a prison—or, better yet, a psychiatric ward. There is no escaping from it. While Iran is carefully reviewing the latest US proposal aimed at restoring traffic through the Strait and halting hostilities, the situation has become even more complex. The bad blood between the US and Iran is well documented, but tensions are now also flaring between Washington and Israeli leaders, the latter being at least indirectly responsible for nudging their steadfast ally into igniting the conflict nearly 100 days ago. After reportedly receiving an earful from President Trump, Benjamin Netanyahu appears to have stepped back from launching an all-out attack on Hezbollah and opted instead to strike Lebanon.

Daily Oil Fundamentals

Bibi is in no Mood to End the Game

02 Jun 2026

Bibi is in no Mood to End the Game

As we approach the summer season of tennis, the current game of deuce between the US and Iran offers no sign that an eventual winner might emerge. On Monday morning the US served with stronger terms and by the end of the day, Iran had counter-volleyed that unless Israel stopped its expanding attack on Hezbollah, all negotiations would be put on hold.

Daily Oil Fundamentals

Substantial Talks or Just Kicking the Can?

01 Jun 2026

Substantial Talks or Just Kicking the Can?

The main characteristics of the markets in May were the gradual but steady erosion in the value of a barrel of oil and the insatiable appetite for equities, particularly the juggernauts of the technology sector. A significant fall in volatility suggests a tentative absence of anxiety, although, by historical standards, trading conditions remained vicious. In our market, trading volume, while decent, was lower than in March or April, which is another sign of receding panic.