Iran foreign minister Araghchi remains in New York following the UN, raising hopes for a deal. Oil is higher today after Trump rejected an initial offer from Iran but it looks like diplomacy isn’t dead.
I find it very difficult for either side to make a deal at this point, as Iran could see any deal as politically-motivated and short-term given the midterms. If they think that’s the case, they will struggle to trust any deal. Both sides are also reloading their arsenals.
We are watching to see if there are any developments coming out of this, as it could be a short meeting if the message from mediators is that Trump rejected the deal and didn’t offer anything new. If that’s the case, oil could get back to the highs of the day and beyond. It’s currently at $93.92 from a high of $96.54. US 10-year yields are at a new cycle high of 5.3 bps to 5.23%.
This article was written by Adam Button at investinglive.com.