Donald Trump clearly cooled the morning euphoria on the markets by stating after convening a cabinet meeting that the US would not settle for a "weak deal" and would not make premature concessions to Tehran. The White House's hard stance immediately triggered a reversal of US indices from historical highs, although global crude oil prices still remain under pressure from deep declines.
- Trump does not want a weak deal: The US President openly declared that the current form of the agreement does not satisfy him and he will not sign a weak deal.
- White House rejects Iran's terms: Washington is currently blocking Tehran's demands – Trump ruled out lifting sanctions in exchange for merely handing over uranium and announced the maintenance of control over frozen billions of dollars.
- Indices give back gains: It was this hard US stance that cooled the morning euphoria. Investors realized that the agreement still has a long way to go, which pulled American index futures from historical highs to near opening levels.
- Oil remains low: Despite Trump's hawkish rhetoric, Brent and WTI oil prices are not rebounding and are still recording deep, over 3-percent declines. The market is still betting on the fact that intensive talks and attempts to quickly close the matter are still ongoing behind the scenes.
Daily Summary – Oil Slides Along with Indices Despite Illusory Hopes for Peace
🛢️Brent Crude Oil Loses 3%
US OPEN: Further records on Wall Street at risk
Market wrap: ASML and Infineon support sentiments in Europe
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