The optimism about a break through in Iran is fading after Trump’s UN speech.
A report earlier from Kyodo suggested Iran was willing to open the Strait of Hormuz in exchange for the US lifting its blockade but there were denials of the report via FARS and Trump didn’t mention anything along those lines in his UN speech. Instead, he said a deal was likely after the midterms.
Naturally, he would be aiming for a deal before the midterms in order to preserve Republican control but it doesn’t look like he thinks that’s possible. That said, there are credible reports that neigbboring countries are working on the diplomatic side so it can change quickly.
The market is voting for ‘no deal’ at the moment though, with WTI up to $91.68 from a low of $89.16. That same sentiment is also leading to US dollar bids, rising yields and a slide in the euro. Today’s decline puts the euro at the lowest since July 29 and without much in the way of support until the July low of 1.1350.
