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Brent weakens on US-Iran de-escalation

The initial rally up to $94/bbl took place amid comments by US President Donald Trump on Truth Social.....
Published: June 11, 2026
Written by:
Mita Chaturvedi

Mita Chaturvedi

Research Associate, Flux
Mita Chaturvedi
4 page report
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Aug'26 Brent crude futures climbed from just below $92/bbl at noon BST to $94/bbl at 13:43 BST but eased to $92/bbl by 14:51 BST. Once again, prices met support here and climbed to $93.78/bbl at 17:25 BST (time of writing)....

The initial rally up to $94/bbl took place amid comments by US President Donald Trump on Truth Social, stating that the US will be hitting Iran "VERY HARD TONIGHT". President Trump also said the US will be "taking Kharg Island" at some point "in the not too distant future" and assume control of Iranian energy "much like we have with Venezuela." Nevertheless, despite the initial spike in prices, continued market uncertainty and weaker Asian fuel demand remain bearish weights on price action. In other news, the US producer price index (PPI) increased 1.1% in May (exp: +0.7%), with goods prices - mostly energy - accounting for nearly 80% of the PPI increase. This brings the annual PPI up to 6.5% y/y in May, its highest level since November 2022, raising expectations of further increases in consumer inflation. Meanwhile, OPEC has lowered its forecast for global demand growth in 2026 to 970 kb/d, marking its second consecutive downward revision. However, OPEC has said it expects consumption to rebound later and has increased its demand growth forecast for 2027 by 190 kb/d to 1.73 mb/d. Finally, the Aug/Sep’26 and Aug/Feb’27 Brent futures spreads are at $1.53/bbl and $8.26/bbl, respectively.

Written by

Mita Chaturvedi

Research Associate, Flux
Mita Chaturvedi

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