So much for peace and all that, right?
US President Trump is now coming out to say “I think it’s over” on the deal/MOU with Iran. It essentially confirms that the fragile ceasefire is likely to end and that both sides will strike again, at least for now.
In this sense, the Strait of Hormuz will likely see a return to de facto closure. Good, It’s not like it was really open at all In the first place. However, the headlines now largely offer hope to those who expect little chance of things getting better.
As such, oil prices are rising again with WTI now up 2.5% on the day and looking to get back to $74.
5-minute WTI crude oil chart ($/bbl)
Just be careful that Trump’s exact words indicate that, for him, the ceasefire is over. However, he continues to say that negotiations will continue but he doesn’t want to be the one to handle the situation anymore. Instead, he will allow his negotiators to continue talking.
But in short, he says doing so would be a waste of time. It’s all semantics really.
The bottom line is that the trade looks dead now that we have hit the reset button. Here we are.
