Oil Prices Fall on Middle East Peace Hopes; ASX Set for Higher Open

Brent crude oil futures have fallen by almost 3% overnight, reaching near their lowest weekly price. Traders are betting on a potential peace deal in the Middle East, which could lead to the reopening of the Strait of Hormuz and ease supply concerns.

On the Australian front, the ASX 200 futures indicate a higher opening for the local market, buoyed by a strong performance on Wall Street. The Australian dollar remains relatively flat, trading just above 0.7130 against the U.S. dollar. Markets are currently considering the possibility of another interest rate hike by the Reserve Bank of Australia (RBA) this year.

Reserve Bank of Australia Governor Michele Bullock recently indicated that the central bank's interest rate increases are beginning to affect the economy. However, she also expressed concern about potential second-round inflation effects stemming from the ongoing conflict in the Middle East. The RBA is expected to make no further rate hikes this year, as signs of softening economic activity are likely to outweigh persistent inflation worries.

Further insights into the RBA's stance will be available later today when Deputy Governor Hauser is scheduled to speak at a fireside chat. Meanwhile, global markets saw mixed results, with U.S. indices showing gains in the Dow and S&P 500, while the Nasdaq experienced a slight decline. European markets, including the FTSE, showed modest gains.