Oil prices deflated late in the morning, after once again hitting peaks around $110 in the early hours of the day. A post by US President Donald Trump contributed to giving a positive input to the market, speaking of an Iran ready to collaborate and of a suspension of attacks on the country’s energy infrastructure. These statements, in addition to causing the price of crude oil to fall, also revived the stock markets, which were still under pressure.
The price of crude oil drops from its highs
Brent futures slipped by 4.8% to 101.27 dollars a barrel, oscillating in the morning between a high of 109.68 dollars a barrel and a low of 91.89 USD, from around 113 dollars last Friday. At the same time, futures contracts on US WTI crude oil recorded a decrease of 6.5% to 91.78 dollars, after having moved in a range of 84.59-101.66 dollars per barrel.
Trump’s post
President Trump, with a post on his social network Truth, today announced the temporary suspension of attacks against Iranian energy infrastructure following talks with Tehran which he defined as “productive”.
The suspension of raids against particular Iranian energy sites, previously announced by the tycoon, will last five days, during which an attempt will be made to reach an agreement with the Tehran regime.
Trump spoke of “very positive and productive talks” with Tehran to reach a “complete and total resolution” of hostilities. For this reason, the President confirmed that he had instructed the Pentagon to “suspend for five days any military attacks” against Iranian power plants and energy infrastructure.
“I am pleased to announce that the United States of America and Iran have had, over the past two days, very positive and productive discussions regarding a complete and total resolution of our hostilities in the Middle East. Based on the tenor and tone of these in-depth, detailed and constructive discussions, which will continue throughout the week, I have directed the War Department to postpone any military attacks against Iranian power plants and energy infrastructure for a period of five days, subject to the success of ongoing meetings and discussions.”
writes Trump.
Stock markets on the rise
Thanks to these indications and the correction of crude oil, the stock markets reversed course and rose. Frankfurt recorded an increase of 1.91%, while Paris gained 1.44%. Madrid (+0.71%) and London (+0.24%) are more composed. The Euro Stoxx 50 index gains 1.37% and the Euro Stoxx 600 1.11%.
The Milan Stock Exchange also turned upwards, recording a 1% progress on the FTSE MIB index in line with the other Eurolists, while the US Futures offer signs of optimism: the contract on the Dow30 marks a +1.7%, that on the S&P 500 +1.58& and the future on the Nasdaq 100 1.59%.
