Trump Hails Iran Deal As Oil Prices Drop And Markets React Positively
Trump links Iran deal progress with falling oil prices and market optimism.
US President Donald Trump said financial markets are reacting positively to the recent Iran truce agreement, stating that investors appear “very happy” with developments surrounding the deal. Speaking to reporters on the sidelines of the G7 Summit in Evian, France, Trump suggested that easing geopolitical tensions could push oil prices below pre-conflict levels.
Trump indicated that crude oil markets were already adjusting to the improving situation, adding that the Strait of Hormuz was partially reopened and could be fully operational within the next one to two days. He said the reopening of the strategic waterway would help restore normal maritime traffic and support lower global energy prices.
During his remarks, Trump emphasised the responsiveness of financial markets to geopolitical developments. “There is nothing so smart as the market,” he said, while noting that further details of the Iran agreement would be shared at a press conference later in the day. He also highlighted that lower oil prices would improve affordability for consumers and ease inflationary pressures.
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Global crude prices have already shown volatility amid the evolving situation. Oil had briefly fallen below $80 per barrel for the first time since March before recovering slightly, with Brent futures trading marginally higher at around $79.25. At one point during the trading session, prices dipped to approximately $77 per barrel before stabilising.
Trump attributed the decline in prices to the gradual normalisation of shipping activity through the Strait of Hormuz, suggesting that the movement of vessels had resumed as tensions eased. He added that restoring full access to the key maritime route would be essential for stabilising global energy markets.
The US President also reiterated that a preliminary agreement with Iran had been reached, including commitments related to nuclear weapons. He said Iran had agreed to key demands and expressed optimism about future relations, while acknowledging that the situation could change if commitments were not upheld. The final details of the agreement are expected to be presented in a formal announcement in the coming days.
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