Markets are registering declines that go beyond 4% in the price of a barrel. At the origin are the statements by Donald Trump that lead us to believe in peace for the Middle East.
The US president left, on Saturday, signs of a possible peace agreement with Iran. In statements made to journalists, noted that Iran was “in serious talks” with the White House.
The markets reacted on Sunday night and the sentiment continued on Monday morning. Traded on the London Stock Exchange, Brent fell 4.44% around 10 am this Monday, the 2nd, reaching $66.24 per barrel. At the same time, West Texas drops 4.82% and stands at $62.07 per barrel.
As Iran is one of the largest oil producers in the world, fears of a cut in supply grow whenever tensions that could lead to war increase. With Trump’s latest signals, the feeling is the opposite, with prospects for maintaining operations in the Iranian oil industrywhich imply the stabilization of the existing supply on the market.
Mixed sentiment on stock markets and falling gold
The main European stock exchanges are fluctuating between slight variations, positive or negative. The German DAX records the biggest gain, in the order of 0.35%, while the aggregate Euro Stoxx 50 index loses 0.15%.
Looking at raw materials, gold futures contract 0.85%, while silver advances 2.41%.
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