Oil prices fell on Wednesday after President Donald Trump announced that Iran “seems standing up” in the Middle East, and that, instead of another military strike, Washington imposed sanctions on Tehran, which some investors were fearful of.
Trump’s comments came on Monday morning following the Iranian rocket attack against the Iraqi US, which could have destroyed world crude energy supply did not kill large energy infrastructure. In his White House speech, Trump also confirmed that no Americans had been injured.
The recent escalation caused fears of an expanding Near East conflict, with participants in the energy market increasingly concerned about the consequences that regional crude supplies could soon disrupt. But throughout Wednesday, tamer’s remarks from both the White House and the OPEC helped reassure markets that the worst scenario had been the worst-case scenario.
He told Abu Dhabi, capital of the UAE, “We won’t see a fight. James Eginton, Tribeca Investment Partners investment analyst James Eglinton said, “This is certainly a provocation between the United States, a strong ally, and Iran, which is a neighbor and the last thing we want is more instability in the Middle East.”
“Trump has sent out a tweet to explain why the oil price fell,” he told CNBC on Wednesday morning about the “Capital Connection.” Twitter is one of the most valuable sources of commodity price guidance for financial markets since the advent of Trump’s administration. Although no energy assets have been targeted, the oil market strategists advised that The perceived threat of an attack even might cause some of the world’s largest oil ship owning enterprises, through which approximately one-third of world shipping oil goes, to steer clear of the vital Strait of Hormuz.