Oil is skyrocketing again. Crude oil rises 6% this Thursday, so that the Brent type barrel is trading at $107, while West Texas quality crude oil stands at $106, after the long-awaited speech by US President Donald Trump on Iran, in which he gave the market a piece of cake and a piece of cake. Specifically, the Republican said that the end of the war is near, but he also threatened to attack Iran «extremely harshly» if the negotiations they are holding do not go well and in the end there is no agreement. «We are going to finish the job. And we are going to finish it very quickly, we are very close,» Trump remarked in his speech, in which he also assured that military operations could soon intensify, and that is that «in the next two or three weeks, we are going to take them back to the Stone Age, where they belong.» However, he stated that in the meantime the negotiations with Iran will continue, thus leaving the door open to a diplomatic solution. Of course, the American president threatened to «strongly attack each and every one of its power plants, probably simultaneously» if there is finally no agreement to end hostilities with Tehran. Trump’s words have destabilized the stock markets, which yesterday were confident in a prompt resolution of the conflict, and have caused a new rise in crude oil. «Oil has done what it always does when the illusion fades. It has soared, not because the war suddenly got worse, but because the market had prematurely priced in the expectation that it would end,» says Stephen Innes, managing partner at SPI Asset Management. According to this expert, «the barrel does not trade hope. It trades access, risk and the probability of supply interruption. And at this moment, the probability curve has tilted again towards scarcity.»
