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