Oil slips after Iran president says supreme leader handed over negotiation powers

President Pezeshkian of Iran has said the Supreme Leader handed the government particular negotiation authorities, the state-run ISNA news agency reported. Investors read this as a sign of added flexibility, possibly improving Tehran's chances of striking an agreement with Washington.

It should be recalled that strategy still rests with the Supreme Leader, meaning any advance depends on agreement between him and the negotiating team.

Tehran has already put forward a two-day plan to reopen the Strait of Hormuz, contingent on its conditions being satisfied — an end to the blockade, release of frozen assets and sanctions relief, among others.

That timetable is shorter than the seven-day plan put forward a month earlier. While the US has yet to accept the offer and talks are still underway, investors took the reduced window as a good sign.

Broader markets are also likely to welcome the development: cheaper crude would ease inflation, lessen the case for rate increases and lift growth prospects.