Markets Prepare for Iran Deal Announcement; Oil Prices Stall Near Multi-Year Highs
Published May 8, 2018
US President Donald Trump is set to announce his administration’s decision on whether the United States will pull out of the 2015 Iran deal at 2:00 PM EST today; doing so would reinstate US sanctions against Iran, prohibiting US companies from importing oil and other products from Iran.
Officials from the UK and France have strongly implored Trump to not abandon the deal; the EU is focused on working on the current deal to address its flaws, however, have since privately admitted that they expect Trump to withdraw from the agreement.
Oil prices rose to multi-year highs yesterday on speculation that global oil supplies would be constricted as a result of renewed sanctions on Iran. Prices have since steadied as traders began to take profits on the recent oil rally.
The US Dollar Index rose to its highest level since December 2017 this morning as investors are placing greater expectations for further interest rate hikes from the Federal Reserve; Fed Chair Jerome Powell noted this morning that “financial markets have gotten the message on the US Central Bank’s plan for gradual rate increases”.
NAFTA talks resumed yesterday as Mexico and the US met to negotiate auto-parts rules for the deal; Canadian trade representatives will meet with US trade officials to discuss the same clauses later today.