Xu described the earlier price hike as a “knee-jerk reaction”. She noted that while some shipping companies might have initially been more cautious, business operations largely remained normal. The market is now “pricing out” the risk that was previously priced in.
She expects “sporadic missile exchange” between Israel and Iran in the coming days, as both nations seek to “save face” before starting potential diplomatic negotiations. Nevertheless, she believes the market’s primary attention will now return to underlying fundamentals.
Meanwhile, oil prices settled more than 7% lower on Monday, losing more than $5 per barrel after the announcement of a ceasefire between Iran and Israel. Brent crude futures ended $5.53, or 7.2%, lower at $71.48 a barrel, while US West Texas Intermediate crude (WTI) eased $5.53, or 7.2%, to $68.51, according to a Reuters report.