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May 9, 2018

Market Inside | FXTM

Market Insights
Daily coverage of the latest market developments, brought to you exclusively by FXTMs Market research team.
Markets Tremble as Trump Deserts Iran Nuclear Deal
Posted 9th May 2018 at 10:21 AM
Lukman Otunuga
Lukman Otunuga
Research Analyst
Twitter: @Lukman_FXTM
In a move that dealt a painful blow to global sentiment, President Donald Trump declared on Tuesday that the United States will be pulling out of the “defective” Iran nuclear deal.
U.S stocks ended mixed on the news while oil prices fluctuated in each direction, as investors considered the potential negative ramifications of Trump’s decision. The U.S President adopted a very aggressive rhetoric during the announcement and failed to hold back from his view that the 2015 agreement was “defective” at its core.
While it was widely anticipated that Trump would pull out of the Iran agreement, what is likely to leave a lasting impact on the markets is the threat that he would also penalize those who help Iran. These overall risks are encouraging traders to price in some new geopolitical risk premium, and his threat can potentially be seen as a blow for U.S allies. There is a threat of Trump’s stark tone questioning U.S relations with its European allies, especially given
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