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U.S. vs Iran Threats Will Continue Adding Volatility to Oil Prices

Eliecer Palacios

Escalating and threatening words over the weekend between President Trump and Iran's President Rouhani will likely keep WTI crude oil prices above $60 per barrel until year end when Iran sanctions kick in, a bullish environment for U.S. shale producers. Major threatening catalysts for the oil markets are not only a potential drop in Iranian crude oil exports, cutting available supply, but also a potential move from Iran to block Persian Gulf exports (as in: "if I don't sell it, no one sells it"). Hassan Rouhani issued a strong warning to Trump on the US campaign to bring Iran exports down to zero.