Citi Predicts US-Iran Memorandum of Understanding Will Hold, Brent Oil Prices to Reach $60-65 by Year-End

Citi Group's report on July 2 stated that the US-Iran memorandum of understanding is expected to remain effective in the coming months and ultimately evolve into a formal agreement. Analysts including Francesco Martoccia noted that the impetus for de-escalation of conflict outweighs the costs of renewed confrontation. They reiterated their recommendation to sell during any summer rallies and predicted that Brent crude oil prices will fall to $60-65 per barrel by the end of the year. Through this memorandum, Iran has largely achieved its demands, while the US has secured an acceptable global oil price. As the situation in the Strait of Hormuz gradually stabilizes, the fundamentals are quickly recovering, but this process remains fragile due to ongoing disputes over control and tolls in the Strait of Hormuz. (Sina Finance)