Trump Tweet Today is Clearest Signal Yet that New Administration is Likely to Reinstate Iran Nuclear Sanctions; Positive for US Producers and Higher Oil Prices
The holiday rift between the outgoing Obama Administration and President-Elect Donald Trump regarding Israel policy has now resulted in a catalyst for oil prices and US oil producers.
President-elect Trump today tweeted about declining US-Israel relations under the Obama Administration saying that“we cannot continue to let Israel be treated with such total disdain and disrespect.” In a second accompanying tweet, Trump said “The beginning of the end was the horrible Iran deal, and not this (U.N.)! Stay strong Israel, January 20th is fast approaching.”
With just 22 days until Inauguration Day, President-Elect Trump has sent his clearest signal yet that he is planning to undo the Obama Administration’s nuclear deal with Iran.
While we have been flagging this key change in policy and its impact on oil markets to clients for many months, the Obama Administration’s parting shots at Israel may have expedited a Trump Administration decision on the Iran nuclear deal to the first quarter of 2017.
We believe it could have a much bigger impact on oil prices than the planned six-month OPEC production cuts next year.
