Where Do Oil Prices Go If President Trump Spikes The Iran Deal?


It seems highly likely at this point that President Donald Trump will withdraw from the 2015 Iran nuclear deal by the May 12 deadline. The implications of such action for global oil markets would be far-reaching and is one of the primary drivers of prices today. It is important to remember that Trump’s withdrawal would not be…

It seems highly likely at this point that President Donald Trump will withdraw from the 2015 Iran nuclear deal by the May 12 deadline. The implications of such action for global oil markets would be far-reaching and is one of the primary drivers of prices today.

It is important to remember that Trump’s withdrawal would not be a surprise. As I mentioned above, traders have already factored new sanctions into prices. Benchmark Brent oil prices have risen to their highest levels in more than three years – around $75 a barrel – on the expectation of fewer available Iranian barrels. There’s still some room left in the market for prices to go higher once the news becomes official, but that will take some time to materialize.


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