📝 Executive Summary
Morgan Stanley lowered its crude oil price forecasts, pointing to revived supply flows through the Strait of Hormuz after a regional diplomatic deal. The agreement reduces the risk of supply disruptions that had previously added a premium to oil benchmarks. With the chokepoint threat receding, analysts see additional barrels entering a market already contending with demand-side uncertainty. Brent and WTI futures declined as traders priced in the prospect of higher inventories and diminished geopolitical risk. The bearish revision underscores how shifts in Middle East stability can rapidly alter energy market outlooks.