US President Donald Trump says 'big day for world peace' as attacks paused
US President Donald Trump said on a Truth Social post that Tuesday was âa big day for world peace.â Trump added that the US will be âhelping with the traffic buildupâ in the Strait of Hormuz and that âbig money will be madeâ as Iran begins reconstruction.
Trump further stated that the US would be just "hangin' aroundâ in order to make sure everything goes well and that he was confident it would. He later added, "This could be the Golden Age of the Middle East."
The statement came after Iran accepted a two-week ceasefire after Trump said he would suspend attacks subject to Tehran agreeing to fully reopen the Strait of Hormuz. Negotiations between the US and Iran will be held in Islamabad, Pakistan, on Friday to finalize details.
Market reaction
Crude oil prices attract some sellers following this headline. At the time of writing, the West Texas Intermediate (WTI) is down 10.78% on the day at $90.27.
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as âlightâ and âsweetâ because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered âThe Pipeline Crossroads of the Worldâ. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. APIâs report is published every Tuesday and EIAâs the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
