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Analyst: Failed US-Iran Talks Could Lead to Renewed Oil Price Rise, Risk Sentiment May Be Hit Again
Svmuu News Charu Chanana, Chief Investment Strategist at Saxo Bank, stated that the inconclusive outcome of the US-Iran talks represents a step backward. For the market, this means that the previous easing trade is likely to fade. Oil prices may rise again, and risk sentiment will once again be hit. The Strait of Hormuz, even if not completely closed, will remain a real and critical chokepoint risk. However, given the significant gap in positions between the two sides on nuclear safeguards and the Strait of Hormuz issue, this is not entirely unexpected. For the US dollar, this means it may regain some safe-haven support, but unless new military escalation occurs, it is unlikely to trigger a full-scale surge. Gold might benefit from renewed geopolitical hedging demand, but the market is not yet ready to fully return to the worst-case inflation shock scenario. (Jin10)
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