tsx today live: Brent crude fell 3.2 per cent on Tuesday and traded at $80.50 after touching $79.61 earlier in the session. The move came as markets leaned on a tentative U.S.-Iran deal that could reopen the Strait of Hormuz at the end of the week.
Oil had been above $100 per barrel a few weeks ago. The drop back to US$80 per barrel gives traders a cleaner signal that the market is pricing in more supply, even before any deal takes effect.
Brent Crude and the Strait
The Strait of Hormuz is the market’s pressure point here. If it reopens, more crude can move through a route that carries a large share of global energy flow, and that is why the price reaction showed up so quickly in Brent rather than waiting for a formal follow-through.
The catch is the deal itself still has hurdles. The context points to unresolved issues in the U.S.-Iran negotiations, including what to do with Iran’s nuclear program, so Tuesday’s move reads more like a bet on lower friction than proof that the supply path is already clear.
Wall Street and Treasury Yields
Stocks were not moving in the same direction as violently as oil. The S&P 500 rose 0.1 per cent, the Dow Jones Industrial Average was up 395 points, or 0.8 per cent, at 9:35 a.m. Eastern time, and the Nasdaq composite was virtually unchanged.
The S&P 500 was within 0.6 per cent of its record set earlier this month. The 10-year Treasury yield eased to 4.45% from 4.47% late Monday, which kept the bond market in a quieter posture while investors waited on central banks.
Kevin Warsh at the Fed
The Federal Reserve began its meeting on Tuesday, and this was the first one under its new chair, Kevin Warsh, who was nominated by U.S. President Donald Trump. The central bank was expected to announce its decision on Wednesday, so traders had one more policy read to absorb after the oil move.
That sets up a simple test for markets and for households that watch fuel costs closely: if the U.S.-Iran talks keep advancing, energy prices can stay under pressure, but the trade only becomes durable if the Strait of Hormuz actually reopens and the industry works back toward full speed, which the context says could still take months.
