Lates News

A report from China International Capital Corporation stated that as the situation in Iran enters its seventh week, there have been further developments. Although the first round of talks "collapsed," the announcement from both the US and Iran that the Strait of Hormuz remains open has largely stimulated optimistic sentiment in the market, despite some fluctuations in the situation. This is generally in line with our base hypothesis: although there may be fluctuations in the short term, in the medium term, the situation is unlikely to spiral out of control. After all, Trump must consider the midterm elections, and a comprehensive and uncontrollable escalation is not in the interest of either party. In a scenario like this, the center of Brent oil prices is expected to gradually decline to around $80 in the second and third quarters, allowing the Federal Reserve to still cut interest rates.