Nanhua Futures: The overnight oil market surged significantly, mainly due to a localized conflict between the US and Iran

Overnight, the crude oil market surged significantly, mainly driven by partial conflict between the US and Iran. Both sides believe the other has violated the ceasefire agreement, and the US revoked general licenses related to Iranian crude oil sales. We have also repeatedly emphasized that the memorandum of understanding between the US and Iran has certain fragility; there are still differences between the two sides regarding Strait control, nuclear issues, the unfreezing of assets, and the proxy-related issue, so disputes and frictions are foreseeable. The overnight market rebound also has some support from fundamentals. Going forward, the key focus will be on the progress in restoring supply and demand. (Nanhua Futures)
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