Oil has sharply repriced lower into the mid-$90s, Naeem Aslam, CIO at Zaye Capital Markets, said in a statement sent to Rigzone on Wednesday.
In the statement, Aslam highlighted that West Texas Intermediate (WTI) and Brent were down 13-15 percent intraday “as a two-week Strait of Hormuz ceasefire triggers a rapid unwind of geopolitical risk premium following the $110+ spike”.
“While the move reflects easing supply fears and potential flow normalization, the market remains highly headline-driven, with volatility elevated and sentiment fragile,” Aslam warned in the statement.
“Structurally, oil sits at a crossroads – near-term downside is anchored by improving supply dynamics and expectations of a more balanced 2026 outlook, while upside risks persist if tensions re-escalate,” he added.
“Macro signals add further complexity, as sticky inflation and energy-driven input costs support demand resilience, but growing concerns around economic slowdown and today’s FOMC minutes could reinforce downside pressure if growth risks begin to dominate,” Aslam went on to state.
In a market analysis sent to Rigzone today, Zaheer Anwari, co-founder and CEO at The Revacy Fund, noted that oil “dropped sharply on Wednesday, falling back below $100 per barrel as traders priced out some of the recent geopolitical risk”.
“The announcement of a temporary ceasefire framework, along with signs of a possible negotiation path between the United States and Iran, was enough to shift sentiment and pull oil lower,” Anwari said.