US, Iran Diplomacy Affects Oil

Developments in the Middle East will remain in the background.

President Donald Trump postponed planned strikes on Iran after saying the outline of a possible agreement had been reached.

The immediate question is whether talks can deliver a lasting ceasefire and fully reopen the Strait of Hormuz.

OPEC+ has also approved a modest September production increase before pausing further rises, leaving oil sensitive to any change in the diplomatic outlook.

Friday s US labour report is the week s main event.

The Fed left rates unchanged in July, but three policymakers voted for an immediate hike, leaving the September meeting open.

A solid employment report would allow the debate to remain focused on inflation, while a marked deterioration could test the view that the labour market remains stable.

Before then, the ISM surveys will provide an early reading on third-quarter activity.

Japan s wage figures will matter for the timing of the BoJ s next move, while German factory orders and Canada s labour report complete a relatively light G7 calendar.

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