Trump’s remarks could take some heat out of crude, as they reduce the near-term chance of a fresh US-led escalation that markets had begun to price after Netanyahu’s hints.
Any relief is likely to be limited, because oil’s risk premium rests on the Strait of Hormuz, where Iranian attacks, the US blockade of Iranian ports and Monday’s limited US strikes keep supply risk live
The bigger swing factor for oil is whether the Qatari-mediated talks produce a Hormuz deal, which would ease shipping risk far more than any single comment from Washington. A divergence between Trump and Netanyahu also leaves open the risk of Israeli action without full US backing, which would likely push prices sharply higher. If Trump is planning strikes he is doing well to keep his mouth shut about it. — Trump is in no hurry to escalate with Iran, but Netanyahu is, and oil markets will be watching which of them sets the timetable.
Summary: Trump said the US has no immediate plan to strike Iran, according to the FT He said the US appeared to be getting everything it wanted from the stand-off Asked about Netanyahu’s hints of an attack this week, he said the US was ready but there may be no need Netanyahu has been pressing for new strikes after the US midterms, AP reported US forces carried out limited, unannounced strikes near the Strait of Hormuz on Monday Qatari-mediated talks on a Hormuz and port blockade framework continue this week US President Donald Trump said the United States has no immediate plan to strike Iran, according to the Financial Times. He signalled he is comfortable with the current stand-off even as Israel’s prime minister hints at military action later this week. Trump said Washington appeared to be getting everything it wanted from the situation.