Oil Collapses on Hormuz Optimism, EUR/CAD Rally May Be Just Getting Started

Oil prices extended their sharp decline on today as markets grew increasingly confident that a breakthrough in US-Iran negotiations could eventually restore normal energy flows through the Strait of Hormuz. Brent crude slipped back into the $86-87 region, with the break below the psychologically important $90 level reinforcing the view that traders are beginning to unwind part of the geopolitical risk premium.