Trump drives US out from Iran Nuclear Deal and oil goes below 70 $

When Mr. Trump tweets,  market maker answer! Yesterday the US President Donald Trump announced on Twitter, the first social network in terms of communications that a President never used first, that today at 2:00 pm (UTC NY) he will tell about his decision on the Iran Deal.

So Mr. Trump anticipated the press conference that was planned for Saturday 12 May, surprising the financial market. A few minutes later, The New York Times published important revelations about the “White House” decision, citing the European source. As NYT writes, seem that the United States President decide to go out from Iran deal and that he is ready to impose new economic sanctions on the Tehran Government. The decision arrives after three years of the deal, stipulated in July 2015.

The agreement was the result of an intense work by Mr. Obama’s administration; to date, Iran is bound to sell at other nation 97% of nuclear fuel and it can not develop nuclear technology more, even not for civil use. As part of the agreement Iran obtain numerous commercial advantages, so the nation is not isolated as it used to be.

Therefore all attempts made by the French President Macron, Angela Merkel and  The Foreign Minister of England  Boris Johnson are failed. According to sources close to the white house, the agreement failed because Tehran increases missile capacity and its expansion and influence throughout the Middle East. This influence, according to Trump, was financed by the money that was returned to the Iranians as part of the agreement, as well as by the oil trade, which is more thriving than ever in the region.

Market Maker watches now to the oil price because after Trump’s tweet, the WTI loss about 1 dollar in one hour. They are not sure about a “buy on rumors, sell on news”, but it would seem certain that the market has already discounted the news reported exclusively by the New York Times and that this evening only awaits a confirmation of this.

Suggested Articles

• How Close Are We to A Stock Market Crash?
• Waiting Game Begins as the US Pulls Out of Iran Deal

While the Saudis push for oil to be above $80 a barrel, according to the Wall Street Journal, through a change in economic policy compared to previous years, on the oil front, the trade war between the United States and China is always kept under control. We will see in the next weeks what the effects of this debate on raw materials will be.