Brent and WTI oil contracts gained sharply around 2% following Donald Trump's social media announcement that his conversation with Israeli Prime Minister Benjamin Netanyahu "went very well." According to the U.S. President, the leaders "are on the same side of every issue."
Trump’s current policy in the region is focused on a nuclear deal with Iran, which is being negotiated by U.S. Special Envoy to the Middle East Steve Witkoff and Iran’s Foreign Minister Abbas Araghchi. The deal aims to limit Iran’s nuclear program in exchange for the lifting of U.S.-imposed sanctions.
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Create account Try a demo Download mobile app Download mobile appIsrael has so far remained skeptical of the agreement and has not ruled out a potential retaliatory strike on Iran’s nuclear facilities. Nevertheless, Prime Minister Netanyahu has avoided openly opposing the U.S. President’s plans, while recently negotiating a reduction in U.S. tariffs on Israeli goods—from 17% down to 10% for a 90-day period.
However, the spike in oil prices may be short-lived, given that U.S. trade policy is significantly reducing demand for crude in China.
Source: xStation5
