Oil slides on US-Iran peace hopes, but supply crunch may persist for weeks: Analysts

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Reports of a potential breakthrough gained momentum after Pakistan’s foreign ministry said it expected a resolution “very soon”, while Washington indicated it anticipated an Iranian response within 48 hours. The proposed framework is understood to include a moratorium on Iran’s nuclear enrichment programme, sanctions relief and a phased reopening of the hormuz over a 30-day period. However, energy consultancy Rystad Energy said markets were underestimating the time required for actual oil flows to normalise. “A deal announcement would move futures further immediately, in fact even the potential of a deal is already triggering a decline in oil prices. However, the…

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