Military action against Iran appears unnecessary, says US President Donald Trump

Further strikes on Iran would not be needed, US President Donald Trump said. Bloomberg reported on Monday that Trump nevertheless described the US as “locked and loaded,” while pointing to "positive momentum" towards ending the Iran war.

Describing Iran’s military position, Trump said: “Iran, militarily, is effectively over,” and added: “We’re just keeping it the status quo, and we’re doing that really at the behest of countries that are their neighbors,”

After Republicans’ midterm election defeat highlighted the conflict’s deep unpopularity, Trump’s comments signalled that he was bringing it to a close.

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

According to the US President, Qatar, Saudi Arabia, the UAE, Bahrain, Kuwait and other countries favour maintaining the status quo, the US naval blockade and the new Iron Gate land effort.

Washington should stop issuing false accounts of negotiations, Iran’s Supreme National Security Council Secretary, Mohsen Rezaei, said. He argued that the US government had suffered serious damage from the war and that Washington should now accept the seven conditions repeatedly outlined by Iran.

A proposal from Qatar and Pakistan seeks to restart diplomatic talks between Washington and Tehran, according to sources cited by Al Hadath. It would permit Iran to enrich uranium domestically up to 3.67%, a ceiling Tehran has reportedly accepted. Under the potential agreement, the United States has also offered to release between $6 billion and $9 billion in frozen Iranian assets in return for a deal.

WTI Oil: Key Questions Answered

WTI Oil: Definition and Benchmark Role

Traded internationally, WTI Oil takes its name from West Texas Intermediate. It is one of three major crude oil types, alongside Brent and Dubai Crude. Its relatively low gravity and sulphur content earn it the descriptions “light” and “sweet”, respectively. This high-quality oil is readily refined. Produced in the United States, it is distributed through the Cushing hub, regarded as “The Pipeline Crossroads of the World”. WTI serves as an oil market benchmark, with its price regularly cited in media coverage.

WTI Oil Prices: Main Drivers

Supply and demand determine WTI Oil prices, as they do for other assets. Stronger global growth can lift demand, while weaker growth can have the reverse effect. Supply disruptions caused by political instability, wars or sanctions can also affect prices. Another major influence is OPEC, the group of leading oil-producing countries, through its production decisions. Because oil is traded mainly in US Dollars, the currency’s value also affects WTI Crude Oil prices. A weaker US Dollar can make oil more affordable; a stronger currency can do the opposite.

WTI Oil Prices: The Impact of Inventory Data

Weekly inventory figures from the American Petroleum Institute (API) and the Energy Information Agency (EIA) influence WTI Oil prices by showing shifts in supply and demand. Falling stocks can signal stronger demand and lift prices. Rising stocks, by contrast, can indicate greater supply and weigh on prices. The API releases its report every Tuesday, followed by the EIA the next day. The two sets of figures are generally close: 75% of the time, they are within 1% of each other. As the EIA is a government agency, its data is regarded as more reliable.

WTI Oil Prices: OPEC’s Production Influence

At meetings held twice a year, the 12 oil-producing nations in OPEC (Organization of the Petroleum Exporting Countries) jointly set production quotas for members. These decisions frequently affect WTI Oil prices. Lower quotas can restrict supply and lift oil prices, whereas higher production has the reverse effect. The broader OPEC+ group brings in ten additional non-OPEC members, with Russia the most notable.