Crude prices fall on US-Iran negotiation hopes

What happened: Crude oil prices fell on June 19th and 20th, with WTI dropping 6.97% and 7.13% respectively, as optimism grew around potential US-Iran peace negotiations. President Trump's statements, such as the Strait of Hormuz being "open to all" if Iran accepts a deal, and pausing US naval escort efforts, fueled this optimism. Iran's response to the US peace proposal was awaited.

Market impact: The fall in crude oil prices led to a rise in US stocks, with the Dow, S&P 500, and Nasdaq ticking up. European shares also rose, with the FTSE 100 gaining 1.5%. Energy stocks within these indices likely underperformed due to the decline in oil prices. Meanwhile, oil companies like Diageo (up 4.6%) benefited from broader market gains.

What to watch next: On June 21st, Iran's response to the US peace proposal is expected, which could significantly impact crude oil prices. Additionally, the US Energy Information Administration's (EIA) weekly petroleum status report on June 23rd will provide insights into US crude oil inventories and production, further influencing oil prices.