On Truth:
Iran has just informed us that they are in a “State of Collapse.” They
want us to “Open the Hormuz Strait,” as soon as possible, as they try to
figure out their leadership situation (Which I believe they will be
able to do!). Thank you for your attention to this matter! President
DONALD J. TRUMP
This is spin but it sounds like the US is taking the deal. This is bearish for oil and bullish for risk assets, international equities, small caps and anything that benefits from the Strait being open.
The key line here is “which I believe they will be able to do”, which is a signal that he’s ready to TACO and take the deal that Iran has proposed.
The market isn’t exactly embracing this but it’s led to some bids in oil and risk assets. The S&P 500 has pared its loss to 27 points from 50 at the open. WTI crude is up $3.03 to $99.40 from as high as $101.85.
This article was written by Adam Button at investinglive.com.