OCBC Daily Credit Snapshot 23 September 2026

Key arguments

• Rotation out of US financials into technology, driven by AI competition concerns and a flatter yield curve, dominated the session.
• Oil prices fell as Iran signalled the Strait of Hormuz could reopen within seven days if US military pressure eases, and Saudi Arabia restarted its East-West pipeline.
• A possible US diesel export ban would likely make Brent outperform WTI, though the effect on outright crude prices is ambiguous.
• Boston Fed President Collins backed last week's rate hike, citing elevated inflation risk, firmer labour market and the case for a more restrictive policy stance.

Corresponding source evidence

1. Oil prices fell further as geopolitical supply risks eased after Iran signalled that it could reopen the Strait of Hormuz within seven days if the US eases military pressure.
2. Should the Trump administration proceed with a ban on US diesel exports, we would expect Brent to outperform WTI, although the impact on outright crude prices is more ambiguous.
3. With the US currently serving as an important marginal supplier to an exceptionally tight global distillate market, removing US barrels from the international market would further tighten ex-US product balances and could initially lend support to Brent.