18:00 - 15.06.2026
June 15, Fineko/abc.az. Falling oil prices, driven by the landmark US-Iran diplomatic stabilization pact, are poised to reignite the global equity bull run that was abruptly derailed by geopolitical friction in the Middle East.
According to ABC.AZ, referencing an operational brief by Karen Ward, Chief EMEA Market Strategist at JPMorgan Asset Management, on Bloomberg TV, the energy correction will reshape macro assets:
Oil Targeting $70 Threshold: As the upcoming treaty unlocks frozen sovereign assets and migrates black-market Iranian crude into official channels, Brent oil prices could cascade toward $70 per barrel in the coming weeks. Ward noted that supply acceleration will extend beyond Iran, as OPEC compliance softens and Gulf states rush to liquidate reserves at current valuation levels.
Greenlight for Rate Cuts: This structural energy correction is bound to suppress headline inflation, potentially prompting major central banks to reverse course. This offers direct relief after the European Central Bank (ECB) aggressively hiked interest rates by 25 basis points last week to counter sticky price pressures.
China Won't Tolerate Chokepoints: Ward projects that the historic accord, set for formal execution this Friday (June 19), will hold over the long term. China, the largest systemic buyer of crude navigating the Strait of Hormuz, cannot afford domestic economic disruption and will prevent Iran from manipulating the critical waterway moving forward.
Undervalued European Equities: Highlighting a noticeable pivot in Brussels away from rigid regulations toward proactive economic growth, the JPMorgan strategist concluded that European equities remain heavily undervalued, carrying deep hidden upside despite lingering market pessimism.
