Citi expects the Iran-US memorandum of understanding to be maintained, with Brent oil prices at $60-65 by the end of the year.

Jinse Finance reported that Citigroup, in its July 2 report, stated that the US-Iran memorandum of understanding is expected to remain in effect over the coming months and eventually turn into a formal agreement. Analysts including Francesco Martoccia pointed out that the motivation for de-escalation of the war outweighs the costs of renewed confrontation. They reiterated the recommendation to sell during any summer rallies, and predicted that Brent crude oil prices would fall to $60-65 per barrel by the end of the year. Through this memorandum of understanding, Iran has basically achieved its objectives, while the US has secured an acceptable global oil price. As tensions in the Strait of Hormuz gradually subside, fundamentals are recovering rapidly, but the process remains fragile due to ongoing disputes over management and transit fees in the Strait of Hormuz. (Sina Finance)