US President Donald Trump declares Iran ‘has agreed to never have a nuclear weapon’

Lallalit Srijandorn FXStreet

US President Donald Trump said that Iran agreed not to ever have a nuclear weapon, the Guardian reported on Tuesday.

In a post on Truth Social, Trump also referred to a news report that Washington is considering establishing a $300 billion fund for Iran if it upholds a final agreeement to end the war, including a nuclear deal.

“Iran has agreed to never have a Nuclear Weapon! Also, the story that the U.S. is paying Iran 300 million Dollars is Fake News, put out by the Dumocrats!!!,” Trump said on his platform.

Earlier, US Vice President JD Vance stated that nuclear inspectors will “absolutely” be allowed to return to Iran as part of the deal with the US to end the war.

Meanwhile, the Israeli military said on Monday that it intercepted “numerous rockets” launched by Hezbollah, the Iran-backed militant group, and that no injuries were reported.

Israel’s Prime Minister Benjamin Netanyahu said Israeli forces will also remain in Gaza, Lebanon and Syria. Netanyahu added that though the war saved Israel from the threat of nuclear annihilation, Israel will continue to thwart threats in the region and will do what it takes to stop Iran from obtaining nuclear weapons.

Market reaction

At the time of writing, the West Texas Intermediate (WTI) is up 0.10% on the day at $79.90.

WTI Oil FAQs

What is WTI Oil?

WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.

What factors drive the price of WTI Oil?

Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.

How does inventory data impact the price of WTI Oil

The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.

How does OPEC influence the price of WTI Oil?

OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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