Commerzbank: Key Issues Remain Unresolved in US-Iran Agreement, Good and Bad News May Alternate in the Next Two Months

(1) Joerg Kraemer from Commerzbank stated in a report that there are still key issues unresolved in the agreement reached between Iran and the United States. Issues such as Iran's nuclear program may be addressed within the 60-day negotiation period of the agreement. "We expect good news and bad news to alternate like a rollercoaster over the next two months," he said. (2) Kraemer pointed out that, for example, an Israeli attack could prompt Iran to close the Strait of Hormuz again. However, the positive market reaction overnight suggests that previous expectations of oil prices fluctuating around the $100 mark may be reduced. (3) He said the agreement limits the downside risk to the economy, even though the economic growth rate in Germany and the eurozone is expected to be only a modest 0.6% this year.