The Nuclear Deal, Oil Prices Spike and the Aftermath

Iran is the third biggest oil producer among the Petroleum Organization and producing about 3.8 million barrels daily which is about 4% of the world’s oil supplies.

However, Donald Trump the president of the United States of America risking worsening the already tense relations between Iran and U.S. allies in the region pulled the United States out of the international nuclear deal with Iran.

Now based on Reuters – Crude oil prices Retrace back to near 3-year highs on Wednesday after the deal was broken.

The export of Iran’s oil to Europe will probably be decreased maybe later on 2019 as many countries may start looking for alternatives for oil trying to avoid any conflict with the US said said Sukrit Vijayakar, director of energy consultancy Trifecta.

Worries of escalating tensions in the Middle East is the fact that Israel is also at alert by mobilizing the national reserve troops.

Syria Accused Israel of launching Missiles at a target near Damascus on Tuesday after US president broke the deal.

The markets are starting to get affected by this new crisis by seen major moves and volatility in the market.

The EUR, it’s already under much pressure by last week’s economic indicators and the pound is falling heavily in recent weeks, we can observe that the markets may probably  continue to fall if also the tensions on the middle east rise.

US Dollar/Brent Crude Oil

Based on the ichimocu system here it can be noticed that the price is above the cloud, tekan sen and kijun sen is above the cloud and the chkou span is above the price.

To be able to spot any potential signals price has to retrace down to tekan sen and then we may start looking for any potential signals.

This article was written by Marios Athinodorou, TeleTrade’s market analyst, and commentator. Among others, Marios is delivering weekly trading webinars. Sign up for upcoming webinars here.