President Trump withdraws America from the Iran nuclear agreement and revives economic sanctions on Iran for better negotiations.

Chanel Holden

2018-05-06 07:30:00 Sun ET

President Trump withdraws America from the Iran nuclear agreement and revives economic sanctions on Iran for better negotiations as western allies Britain, France, and Germany regret the U.S. decision. To the horror of European partners (but the delight of middle-east allies such as Israel), President Trump pulls America out of the Iran nuclear deal that several European countries have advocated since 2015.

The Trump team acts on a whimsical hunch that if Iran is subject to economic pain, this country may break-and-abandon various kinds of hostile activities from nuclear development to tacit support for terrorism in middle-east proxy wars. U.S. crude oil prices surge by 3% to the historic high threshold near $78-$85 in 3.5 years as stock analysts and economic media commentators target the new high range of oil prices between $85 and $95 in mid-2019.

Iran thus emerges as a major energy threat as the Trump administration introduces draconian economic sanctions on the quasi-nuclear nation.

In response, Saudi Arabia affirms that it would work with other producers to lessen the adverse impact of any shortage in oil supplies. This latter strategic move helps enhance the price prospects of the Aramco IPO that may take place between early-2019 and mid-2020.

 


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