Home Business NewsBusiness Oil slides as the US nears nuclear accord with Iran

Oil slides as the US nears nuclear accord with Iran

by LLB Reporter
18th Feb 22 11:59 am

Reports of the US and Iran nearing a new nuclear deal couldn’t have come at a better time and oil prices are slipping at the prospect of more than a million barrels of crude re-entering the market. In the absence of a deal, we could already be talking about triple-figure oil prices.

Of course, the risk of a Russian invasion remains heightened so there’s plenty of potential for oil prices to head higher once more if troops do cross the border but the combination of next week’s Blinkin-Lavrov meeting and a nuclear deal are providing relief for crude markets.

“Gold surged once again on Thursday in risk-averse trade and topped $1,900 for the first time in eight months. The yellow metal is paring gains today, off around four-tenths of one percent, but remains well supported given the level of uncertainty and anxiety that exists,” said Craig Erlam, Senior Market Analyst, UK & EMEA, OANDA.

“It has really benefited from its role as a safe haven and inflation hedge, blowing away any suggestion that gold no longer serves such a purpose or that it’s been in any way replaced. If troops cross the border, we could see it surge once more and potentially eye levels not seen since late 2020.”

Leave a Comment

You may also like


Sign up to our daily news alerts

[ms-form id=1]