Headlines: Trump says Memorandum of Understanding with Iran is over, don’t want to engage with them US President Trump: Iran are dirty players, they are ‘scum’ Iran issues statement in condemning blatant violation to ceasefire deal by the US Oil prices jump as Trump says that…
an ceasefire deal is over Risk mood sours after Trump walks on Iran deal, threatens to cut trade ties with Spain Gold stays under pressure amid US-Iran escalation and increase in rate hike bets ECB’s Escriva: Will keep all options on the table and decide on a meeting-by-meeting basis China reportedly decides to lift restrictions on refined fuel exports for the rest of July Market update: WTI crude up 6% to $74.70 European stocks slide lower; S&P 500 futures down 1% NZD leads, JPY lags on the day 10-year Treasury yields up 5 bps to 4.58% Gold down 1.4% to $4,050 Bitcoin down 2.5% to $62,108 Geopolitics is back on the menu as US president Trump’s visit to Ankara for the NATO summit has already sparked some fireworks. He started by lambasting Spain over their defense spending contribution, or should I say lack thereof, and threatened to cut trade ties with Madrid
That before circling back to his Greenland agenda with much renewed vigour. In the midst of that, he took the time to hit back at Iran by saying that the ceasefire deal/memorandum of understanding is now over. It essentially marks a reset in ties between the US and Iran, leaving things stranded once again.
As such, oil prices surged higher on the news with WTI crude climbing by 6% to $74.70 on the day. Brent crude is also seen up by 5.5% to $78.30 on the day. After Trump’s remarks, the overall risk mood in markets soured.