The prospect of a stronger supply is adding further downward pressure on Oil prices. BNY observes that “diplomacy buys time,” with the US and Iran “also communicating again, likely through regional intermediaries.” The bank reports that President Donald Trump “canceled planned strikes after allies outlined a potential framework covering de-escalation, the Strait of Hormuz and Iran’s nuclear program,” and that “oil prices have fallen sharply in response.” According to BNY, Trump indicated the talks “could help reopen the Strait of Hormuz and keep alive a path to curb Iran’s nuclear program.” (This story was corrected on July 3 at 16:45 GMT to fix a misspelling in Iran's Foreign Ministry spokesman Esmail Baghaei's name.)