- Trump is sitting back, for now, waiting to see what happens when it comes to Iran.
- Oil traders keeping a close eye on developments and the Strait of Hormuz.
The tensions between the U.S., U.K. and Iran continue to simmer away in markets with respect to the Iran noise where news hit the wires on Friday announcing that Iran had seized a British oil tanker.
Earlier today, there were reports that Iran had arrested 17 spies who the nation says were working for the CIA and sentenced some of them to death. Iran's intelligence ministry had said the suspects had been collecting information in the nuclear, military and other sectors.
US President Trump dismissed the allegations, saying they are "totally false".
"Just more lies and propaganda (like their shot down drone) put out by a Religious Regime that is Badly Failing and has no idea what to do. Their Economy is dead, and will get much worse. Iran is a total mess!"
This is the latest development between Washington and Tehran which have been at loggerheads over Iran's nuclear programme since Trump pulled out of the deal. Speaking out in more recent trade, Trump has said, "It is getting harder to ‘want to make a deal on Iran ... Talks could go either way, very easily," and he will sit back, "wait and see what happens".
The price of oil is relevant in this regard. WTI has based down at the $55 handle and climbed to a recovery high of $56.92 earlier today. Oil trades in tandem to risk and US stocks and a big week ahead in earnings could also be driver outside of tensions between Washington and Tehran. The thing to watch for is whether heightened tensions will lead to a closure of the Strait of Hormuz which would have an impact on oil exports.
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