Oil extends fall, US futures steady ahead of Micron earnings

Oil prices extended their decline on Wednesday, with WTI crude falling nearly 3% to $71.11, as the market digested the lack of a breakthrough in US-Iran technical talks. The negotiations are set to resume next week, leaving the Strait of Hormuz situation in limbo. While early signs of vessel traffic recovery are encouraging, activity remains limited, keeping crude under pressure.

For interest rate and central bank policy traders, the oil price move is a key input for inflation expectations. Lower energy costs could ease headline inflation, potentially reducing the urgency for central banks to maintain a hawkish stance. However, the broader market is also watching equity futures, with US futures steadying ahead of Micron's earnings after the close. A strong report from Micron could boost tech sentiment and risk appetite, while a miss might reignite concerns about the AI-driven demand cycle. For real-time pricing on these moves, traders can refer to NowPrice's rates quotes.

Looking ahead, the focus remains on the US-Iran diplomatic track and any developments in the Strait of Hormuz. On the data front, weekly US jobless claims and durable goods orders are due later this week, which could influence rate expectations. Micron's earnings will be the key near-term catalyst for equities and tech, with implications for the broader risk-on/risk-off dynamic that affects bond yields and rate differentials.